BC Residents: Tax Break for Vacant Properties Under $400k

BC Residents: Tax Break for Vacant Properties Under $400k
DATE
May 3, 2024
READING TIME
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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:

Note: The information provided is for convenience and guidance only and should not be considered a replacement for the legislation.

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