As a BC resident, you may be eligible for a tax credit that effectively negates the vacant tax on units up to $400k in value. The BC government offers a tax credit of up to $2000, which can be applied to one or more properties each year if all qualifications are met.
Tax Credits for the Speculation and Vacancy Tax
The BC government provides two tax credits for the speculation and vacancy tax: the tax credit for BC residents and the tax credit for other owners. Both tax credits are non-refundable and cannot be applied to amounts owed from previous years.
Tax Credit for BC Residents
To qualify for the tax credit for BC residents, you must meet the following criteria:
- Be a resident of BC for income tax purposes as of December 31
- Be a Canadian citizen, permanent resident of Canada, or confirmed BC Provincial Nominee
- Not be an untaxed worldwide earner (a category of taxpayer that includes members of a satellite family)
The maximum tax credit amount is $2000, which can be applied to one or more properties each year if all qualifications are met. If you qualify, you do not need to apply for the BC resident tax credit, as it will be automatically applied to any balance owing when you receive your Notice of Assessment.
Tax Credit for Other Owners
The tax credit for other owners is for property owners who do not meet the criteria for BC residents. This includes:
- Foreign owners
- Untaxed worldwide earners (a category of taxpayer that includes members of a satellite family)
- Individuals who are not residents of BC for income tax purposes
- Certain corporations or trusts
The tax credit amount is based on the BC income balance available. The tax credit for other owners is not automatically applied and requires a self-directed application process through eTaxBC.
Sources:
- Government of British Columbia - Tax credits for the speculation and vacancy tax.
- Government of British Columbia - Speculation and vacancy tax.
Note: The information provided is for convenience and guidance only and should not be considered a replacement for the legislation.
The content of this article is for informational purposes only and should not be considered as financial, legal, or professional advice. Coldwell Banker Horizon Realty makes no representations as to the accuracy, completeness, or suitability of the information provided. Readers are encouraged to consult with qualified professionals regarding their specific real estate, financial, and legal circumstances. The views expressed in this article may not necessarily reflect the views of Coldwell Banker Horizon Realty or its agents. Real estate market conditions and government policies may change, and readers should verify the latest updates with appropriate professionals.
