Vancouver Condo Real Estate Video Blog #590 - August 20, 2010
Property Transfer Tax Audit on a Vancouver Condo
Ian Watt video blogs about how his clients were audited by the BC provincial government as they purchased a luxury Vancouver condo well below market value and the government thought they were cheating the system. If you want to voice your opinion or if you don't care for Ian's comments please email your feedback to ianwatt@ianwatt.ca and visit http://www.ianwatt.ca/RealEstateVideos for all the Ian Watt Real Estate Video Blogs.
Ian Watt: Hi, Good afternoon! It's Ian Watt in Downtown Vancouver. A clients got a letter from the provincial government saying they're being audited in regards to their property transfer tax and as you know property transfer tax on any purchase in great province of British Columbia is 1% on the first $200,000 dollars, 2% on the remainder that's one time fee you got to pay to the provincial government. Well what happen was they got an exceptional deal on this property and they the government flied it and said you know what we think you may have scam this somehow. I guess what they're thought it was perhaps that they knew the owner or perhaps the buyer and seller came to an agreement and traded like an arvee so they could get a discounted price. I don't know who knows what they thought but nonetheless they got a great deal on the property and the government thought they were just trying to cheat the property transfer tax. So what it happen was I took over the file send out my emails explain this situation, show the contract of purchase and sale, show the mls documentation, showed all everything that we had and explained that this one was just a good deal. It have been in the market long enough to know that it wasn't done just by handshake and a little cash under the table. Nonetheless if you ever get a letter like that and you did buy it honestly, fairly at market value or even at a discount make sure you prove to the government that you did it all by the book. We proved it and then basically with the half hour coz' it's all done by email and this is by far the fast as any government worker is ever work. They sent us an email back saying we dropped the case everything is great your property transfer tax was perfect. My name is Ian Watt. If you have any questions. You can always email me at ianwatt@ianwatt.ca. Thank you very much and have a great day!