Do you know how recent changes to the Harmonized Sales Tax (HST) Transitional Rules affect you as a prospective new home buyer?
On February 17, 2012 the provincial government announced significant changes to the Harmonized Sales Tax (HST) Transitional Rules as BC gets ready to switch back to Provincial Sales Tax (PST) on April 1, 2013.
These new rules are intended to relieve some of the tax pressure on new home buyers and encourage new home purchases in the next year. The major changes include four areas:
1. BC New Housing Rebate
The maximum rebate threshold for new BC homes for sale has increased up to $850,000 from $525,000. This creates a maximum potential rebate of $42,500 compared to $26,250 under previous rules. Now, over 90% of new…