- The GST only applies to “new” residential housing: used (i.e., resale) residential housing is not subject to GST.
- BC will provide a rebate for new housing purchased as a primary residence to ensure that, on average, purchasers of new homes up to $525,000 do not pay any additional tax due to harmonization. The rebate is available whether the new housing is to be owner occupied or rented.
- The rebate will be 71.43% of the provincial portion of the GST, up to a maximum rebate of $26,250. Purchasers of eligible new homes above $525,000 will be eligible for a rebate of $26,250 (i.e. a rebate on the first $525,000 of value).
- The GST only applies to new housing, so the rebate is only available for new housing.
- The BC new housing rebate will be available for all types of housing currently eligible for the federal GST new housing rebate and will be subject to the same eligibility conditions. Qualifying housing generally includes newly constructed and substantially renovated homes used as a primary place of residence by an individual (or qualifying relation of the individual).
- To support affordable rental housing in the province, BC will also provide a new rental housing rebate of 71.43% of the provincial portion of the HST, up to a maximum rebate of $26,250 per unit.
- The new rental housing rebate will be provided to landlords who construct or substantially renovate their own rental housing and, as a result, are required to self-assess and pay GST under the self-supply rules. The rebate will also be provided to landlords who purchase newly constructed or substantially renovated rental housing in BC and pay GST on the purchase.
- The new rental housing rebate will be available for all types of new or substantially renovated rental housing currently eligible for the federal GST rebate for new residential rental properties, and will be subject to the same eligibility conditions.
- The new housing rebates will be administered by the Canada Revenue Agency.
The disposition of Canadian real estate poses more significant income tax issues to a US resident. Unlike the United States, Canada imposes tax on the basis of residency, not citizenship. However, non-residents of Canada may be subject to income tax on incomes from employment exercised in Canada, incomes from businesses carried on in Canada, and gains realized on dispositions of ‘taxable Canadian properties’. Canada also imposes tax on certain types of passive income (including renting, royalties, and interest) paid by Canadian residents to non-residents of Canada. A US purchaser of Canadian real estate will eventually be subject to Canadian income tax on the disposition of direct or indirect interests in real estate that are ‘taxable Canadian property’. Real property or real estate situated in Canada is the most common example of ‘taxable Canadian property’. Shares of Canadian corporations or interests in resident or non-resident partnerships or trusts that derive most of their value from Canadian real estate will also be considered taxable Canadian property. Shares of US corporations deriving greater than 50% of their value from Canadian real estate are also considered to be taxable Canadian property. Capital gains are subject to a preferred rate of taxation in Canada. A capital gain is determined by deducting from the proceeds of disposition, the taxpayer’s ACB (tax cost) in the property, and any outlays or expenses made or incurred in connection with the sale. One-half of the capital gains (referred to as ‘taxable capital gains’) is included in the calculation of income for Canadian tax purposes. Assuming they had no other income subject to Canadian income tax, US-resident individuals would pay Canadian federal tax on taxable capital gains realized in 2004 at marginal rates ranging from 20.5% (on the portion of taxable capital gains below $30,000) and 43.7% (on the portion of the taxable capital gain exceeding $100,000). At top marginal rate, the effective rate of tax imposed by Canada on the capital gain would be 21.85% (43.7% times 1/2). With some limitations, US residents should be able to deduct the Canadian income taxes as a credit against their US federal tax liability in respect of the gain realized on sale. The same may not hold true for any state taxes that may be payable by the US individual on the gain, as some states, such as California, do not grant foreign tax credit relief to their residents for the purposes of computing state income taxes.
British Columbia imposes a Property Transfer Tax (‘PTT’) on the purchaser of real property situated in the province. The PTT becomes payable upon application for registration of a taxable transaction at a land title office. The PTT is computed at the rate of 1% of the first $200,000 CDN of the fair market value of the transferred property and 2% of the remaining fair market value. The acquisition of ‘real property’ in British Columbia may also be subject to the 13% Harmonized Sales Tax (‘HST’). ‘Real property’, generally, includes land, any permanent structures thereon, a mobile home (but not including travel trailers, motor homes, camping trailers, or other recreational vehicles), and floating homes. Generally, used residential units are exempt from the HST. Vacant land will generally be subject to HST regardless of the intended use of the land by the purchaser. US residents will be subject to Canadian income tax on any capital gains realized on the eventual disposition of the property. A purchaser of Canadian real estate should keep appropriate documentation to support the tax cost (adjusted cost base, or ‘ACB’) of the property for use in computing any capital gain or loss on the eventual disposition of the property. Any PTT or HST payable in respect of the acquisition will form part of the ACB of the property to the purchaser, as will as any legal expenses and/or commissions paid in respect of the acquisition. It should be noted that, when the vendor of the property is another non-resident of Canada, the purchaser, regardless of his residence, must ensure that specific withholding and compliance requirements are adhered to in order to prevent the purchaser from becoming liable for the vendor’s Canadian tax liability in respect of the sale of the property to the purchaser. This is discussed in greater detail below.
Trail, BC is nestled in the beautiful Selkirk and Monashee mountain ranges. Its 8,000 residents are afforded unparalleled lifestyle opportunities. It is a special place with affordable real estate, outstanding recreational facilities and an abundance of outdoor activities. In addition, it has an active arts and culture community and a variety of service clubs and organizations. Trail has been declared BC’s Number One Sports Town offering a wealth of sports and state of the art recreational facilities. Enjoy golfing, hockey and fishing to mountain biking, hiking and skiing. The city is also home to the Kootenay Boundary Regional Hospital, the largest diagnostic and acute care hospital in the West Kootenays. With a thriving economic base including the world’s largest lead and zinc smelter, Trail has it all. Steeply terraced neighbourhoods, riverfront properties, downtown offices, and recreational properties, Trail offers prospective real estate buyers excellent opportunities.
Warfield is officially known as the Jewel of the Kootenays. The charm of this village is hard to resist. From the “Mickey Mouse” homes, so named due to their charming character to larger homes on beautiful tree lined streets, this village remains very popular. Warfield residents take pride in their well-kept homes and you will find many tidy gardens, abundant fruit trees and well manicured lawns. Webster Elementary School is part of Warfield. Warfield Centennial Pool is one of the areas outdoor pools. There is also Haley Field, offering running tracks and several ball diamonds. Warfield backs onto the local Redstone Golf Course, cross country and bike trails such as the Railgrade Trail that connects the communities of Rossland and Warfield. There is also a bank, restaurant, coffee shop, gas station, and community hall.
Rossland is a city in the West Kootenay region of British Columbia. Tucked high in the Monashee Mountains, Rossland is at an elevation of 1023 metres (3410 feet). Population today is approximately 3500; a number that fluctuates from season to season. The population is at its peak during the winter. But back in 1897, as a result of a gold rush, Rossland for a time was one of Western Canada’s largest cities. A number of historic buildings survive from this time. Rossland promotes itself as ‘Canada’s Mountain Bike Capital’ and an extensive trail system radiates from the outskirts of the town. Nearby is Red Mountain Resort, rated as one of the best in the world for the hard-core skier or snowboarder. If cross country siking is your sport check out Black Jack Ski Club. Once the snow has melted for the winter, Redstone Resort has world class golfing five minutes out of Rossland. It really is a four seasons destination.
The Village of Fruitvale, is the “Heart of the Beaver Valley” which includes the Village of Montrose , the Village of Fruitvale, and the community of Beaver Falls. Fruitvale is a clean air community with spectacular natural scenery, unique shopping and friendly people. If rural living at it’s best is what you are looking for, you’ll find it in Fruitvale. Fruitvale has many sports clubs including the Beaver Valley Nite Hawks Hockey Club, Beaver Valley Little League, Beaver Valley Youth Soccer, Beaver Valley Cross Country Ski Club, Snowmobile Club, Champion Lakes Golf & Country Club. Nearby you will find the Champion Lakes Provincial Park.
Christina Lake is British Columbia’s recreation paradise. The scenery is spectacular, the climate wonderful. Whether you are planning a vacation, wedding, reunion, or looking for a quieter lifestyle, Christina Lake has a lot to offer any time of year. Drenched in summer sun, Christina Lake is legendary for its warm, clean water, ideal for swimming, boating, and water sports. The surrounding mountains have an abundance of hiking and biking trails, some of BC’s finest. The Trans Canada Trail runs through the area, with trestle bridges, tunnels and the spectacular Cascade Gorge. Nearby Kettle River is a great mild kayaking run, while golfers can choose between two excellent courses. In winter, cross country trails are abundant, snowshoeing is very accessible, or you can downhill at nearby Phoenix or Red Mountain. With its small town charm and scenic setting, our community provides plenty of local amenities, recreation facilities and our new Christina Living Arts Centre.
The name Montrose was chosen after a popular place in Scotland. Known as the gateway to the Beaver Valley, perched atop a hill, this village affords stunning views of the Columbia River and surrounding valley floor. Situated between Fruitvale and Trail. Montrose has several parks a community hall and a Volunteer Fire Department.
Salmo is a small friendly community in southeastern British Columbia. It is an equal 30 minute drive from the communities of Nelson, Castlegar, Trail and Creston. Mines in the area were major producers of gold, silver, lead, zinc and tungsten. Logging has continued to flourish over the years and continues today as a mainstay for many residents of the area. Surrounding mountains, pristine lakes, streams and rivers make Salmo an ideal setting for outdoor recreation enthusiasts. During the winter months the local ski hill offers night skiing on fully lit runs as well as great daytime skiing on the weekends. Salmo also has an indoor curling rink, outdoor skating rink and many cross country ski trails. In summer, the outdoor pool, hiking trails and local parks provide endless opportunities to enjoy a healthy living lifestyle. All of this makes Salmo truly one of the best places to live.