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"Hot” province changes tax rules to boost new homes

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Canadian Realestate Magazine | 17 Feb 2016, 11:04 AM Agree 0
New tax breaks aim to help young homebuyers – but commentators say that the government hasn’t gone far enough
  • Glen | 11 Mar 2016, 12:21 PM Agree 0
    Here is what the goverment SHOULD have done with the PTT to slow down the RUSH to buy homes in Greater Vancouver
    Change the Property Transfer Tax Rate on Residential Property ONLY
    --- give preference to TAX FILING Canadians and Landed Imigrants

    Require a Down payment test
    ---- test if the Buyer has savings in CANADA for 12 mo before the purhcase (included any gift over 5% of property value)
    -- Test if the buyer has been filing taxes in Canada for two previous tax years minimum of Line 150 must be 10% of mortgage requested
    Require a Minimum Income Test
    *** This will impeed money laundering and encourage persons living in Canada to pay taxes on some of thier World Income

    a) For those that qualify
    For Canadian Citizens or landed Imigrants who's down payment is or has been on deposit in Canada and who can show 2 yrs mimimum Income Taxes filed in Canada
    ---- My suggested New PTT Rules
    PTT of 1% on 1st 400k, 2% next up to 1 Mill, and 3% for anything over 1 million
    Funds must be from Own Resources and have been in Canada for 12 months or more including any gift of over 5% of the value of the property
    - Funds could be from the sale of Canadian real estate or other asset (in Canada) that has been owned for 12 mo or more by the purchaser or the person giving the gift
    --- Persons who are buying must have Filed Taxes in Canada for last two consecutive years showing net earnings (Line 150)
    of no less than 10% of the properties purchase or tax assessed value

    IF a new buyer CAN NOT meet the minimum guidelines then the PTT would be a Flat 10% PTT would be required.

    EXIT PTT Rule in addition to any Cap Gains
    -- Must have filed taxes (In Canada showing income of 10% of the properties original purchase price)

    PENALTIES FOR FRAUD would be double the PTT paid and would be charged against the buyer and any lender associated with the financing.
    Banks would be responsible for making sure that these rules were followed as they confirm documents or the financial institution would be liable for the same penalty of double the PTT that should have been paid.

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