Property tax increases
Many British Columbians are shocked after receiving their property tax bills in the mail this year, with some facing an increase of 15 per cent -- five times the rate of inflation.
But what caused the increase?
It is not the fact that your house has gone up in value that determines the amount you pay. It is whether or not your property value has gone up faster than other properties in your city.
If everyone's house went up the same amount, everyone would pay the same increase.
In the City of Vancouver, people lucky enough to own a single family home are really feeling this year's tax increase.
Single-family homes in Vancouver have increased a lot faster than condominium prices. This means individual homeowners picked up a larger share of the taxes.
Homeowners in Vancouver pay on average 14 per cent more.
However, there are solutions for people who are house rich but cash poor by deferring their taxes.
If you are 55 years of age, or the surviving spouse of someone over 55 or a disabled person you can defer your taxes.
You have to have 25 per cent equity in the home -- that's to make sure the government can collect the taxes when you sell the property of after your dealth.
This only applies to your principal residence. Vacation properties or rental properties do not qualify.
And of course, the government charges you interest on the deferred taxes.
Home business insurance
Many people who run a home business fail to tell their insurance broker. The result is that many businesses are operating without insurance.
One viewer emailed Olsen On Your Side and said he had operated a small machine shop business out of his garage for six years -- and only recently learned his homeowner's policy would have been void if he had to make a claim.
Reliance Insurance's Jim Ball has been in the insurance business for more than 40 years.
His advice: if anything changes in your work life, even if you are bringing work home from the office, tell your broker.
Many home-based business owners need an endorsement on their home insurance policy, which costs approximately $300 to $400 a year.
Frank Fourchalk has been a locksmith for 20 years and has a home office containing many expensive tools of the trade.
Even though he has Lexan windows to protect himself from theft, he also carries insurance.
"What I have of course is house insurance for the house and then I have to have a totally separate business policy," he explained.
"That's probably one of the worst things is to assume that everything is covered under your house insurance."
Fourchalk needed a separate, more expensive, commercial policy to cover his business.
Insurance is often the last thing on your mind when you are starting a business or doing a little work on the side. Always talk to a broker and don't get caught short.
With a report from CTV British Columbia's Chris Olsen
