Should I defer my BC property taxes?
If you choose to defer your property taxes, a key benefit to note is that the deferred amount is charged simple interest, this is better than compound interest that charges interest on interest. … The interest rate is set every six months by the Minister of Finance.
When can you defer property taxes in BC?
When to apply. If you qualify for the program, you can submit an application to defer your unpaid property taxes between early May and December 31 of the current taxation year. However, we recommend applying after you receive your property tax notice and before your property taxes are due.
Is deferring property taxes a good idea?
The total amount deferred on a property cannot exceed 75% of the assessed value of the property. Property tax deferrals help seniors make the most of the equity they have built with their homes and frees up some cash for a comfortable retirement.
What happens if you don’t pay your property taxes in BC?
If you don’t pay your property taxes by the due date, your account will become overdue. Unpaid property taxes become delinquent after December 31 of the current tax year and collection action will begin. Collection action may include: … Forfeiture of your property to the Province of British Columbia.
How long can you defer taxes?
If you are able to pay your tax obligations in full, but just need a bit more time, you can apply for a short-term payment agreement, which provides up to 120 days to pay in full.
Do seniors pay property taxes in BC?
Older people in BC can apply for Property Tax Deferral (a low interest loan) to pay your current year property taxes on your principal residence. You are eligible if you are: 55 or older during the current year.
Can I defer paying taxes?
Tax deferral is when taxpayers delay paying taxes to some point in the future. Some taxes can be deferred indefinitely, while others may be taxed at a lower rate in the future. Individual taxpayers and corporations may defer certain taxes; retaining corporate profits overseas is also a form of tax deferral.
What’s the point of deferring taxes?
Tax-deferred accounts allow you to realize immediate tax deductions up to the full amount of your contribution, but future withdrawals from the account will be taxed at your ordinary-income rate.
What is the benefit of tax deferment?
Saving for retirement by investing in a tax-deferred vehicle can give you a big boost over time—forgoing the tax bite while you grow your money and potentially lowering the tax impact when take income. Tax-deferral is a feature of many investment vehicles (variable annuities, IRAs, 401(k) plans).
How do I defer my property taxes in Surrey?
Contact. If you have any questions regarding the Property Tax Deferment program or the new online application, please call 1-888-355-2700 toll free (in B.C.) or 250-387-0555 (outside of B.C.) or email email@example.com. You can also find more information at gov.bc.ca/propertytaxdeferment.