When the new announcement came out in Early March that the government would be offering a "First Time Home Buyer Bonus", the details were lacking.  We wondered if it would be a tax credit or a cash back... well, thanks to Tony Spagnuolo, a Vancouver lawyer, we are a little closer to getting the details. See below... 

FIRST TIME HOME BUYER BONUS

March 16, 2012

We are frequently asked how this bonus will work.  Is it an offset against income tax, is it treated like an expense to reduce taxable income, what is going on ?

As we posted to Facebook and Twitter yesterday, Tony called the Ministry of Finance and was told this has nothing to do with a home buyer's income tax return.  The home buyer, assuming he or she meets the criteria, applies for the bonus.  If they are eligible, the government approves the application and sends a cheque to the applicant for the amount claimed.

Of course all the criteria must be met but if this is correct, it sounds like a great program for First Time Home Buyers, as it is basically free money. You don't even need to insert information on your income tax return.

Final details will be out soon, and we will keep you posted.

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Thank you

Tony Spagnuolo

Spagnuolo & Company Real Estate Lawyers

#300-906 Roderick Avenue

Coquitlam, BC  V3K 1R1

Direct Phone:  604-777-7406

Fax:  604-527-8976