Curious to know what exactly Speculation Tax is?
Yep another tax! Just when you thought you had handed out enough on your retirement dream or dream of upgrading to a larger house with your growing family they ask for more! The reason behind the speculation tax is to encourage homeowners of empty properties or homes to either find renters or to list their homes for sale. The Speculation Tax is around 0.5% of your assessed property value. For example if you let a $5,000,000 home sit empty, this means an extra $25,000 in taxes.
People living in B.C. Canada who have more than one home who aren’t exempt will be eligible for a credit. This credit is intended to cover the tax on the assessed value up to $400,000. If you own a $3,000,0000 house in White Rock then the remaining $2,600,000, of the property then taxed at the full rate.
Any property owners who are looking to be exempt from speculation tax is required to apply for exemption prior to March 31. You’re cutting it close. This tax applies to all BC homeowners, whether you are a speculator or not. Those who don’t apply, or qualify, will be sent tax bills which will be due to be paid on or before July 2.
Here are some of the requirements which may have you will exempt from the tax:
The property is your principal residence.
You have rented it out for at least 6 months of the year (only three months is required in 2018)
You are disabled
The property was inherited
The property is valued under $150,000 pfff. ya right!
A person was away and it was vacant due to medical reasons, residential care, work or spousal separation.