Home Flipping Tax

Starting in early spring 2024, the Government of BC will introduce a new tax aimed at sales proceeds from the sale of residential properties in BC. This tax targets residential properties owned for less than two years, with rates set at 20% for sales within 365 days. The tax gradually decreases to zero between 366 and 730 days. It's important to note that this tax is payable in addition to any federal or provincial income taxes incurred from property sales.

The tax will also be applicable to assignments of contracts to purchase residential properties.

This tax will come into effect for properties sold on or after January 1, 2025, regardless of when the property was purchased. For example, if you bought your home in February 2023 and sell it on January 1, 2025, you'll be considered as having held the property for less than two years, and the income from the sale will be subject to the tax.

Certain life circumstances will qualify for exemptions from this tax. These include situations such as separation, death, disability or illness, relocation for work, involuntary job loss, insolvency, change in household membership, or personal safety.

Additionally, individuals selling their primary residence within two years can exclude up to $20,000.00 when calculating taxable income.