Home Flipping Tax Explained
As of January 1, 2025, the BC Home Flipping Tax has officially come into effect, and it’s essential for home buyer and home sellers to understand how this new tax differs from the federal property flipping tax. Specifically, this tax targets short-term property sales within British Columbia.
Home Flipping Tax - Key Points
The tax applies to income from sales of residential properties, presale contracts, or assignments owned for less than 730 days (two years). This includes properties purchased before January 1, 2025, as long as they are sold on or after that date and held for less than two years.
The Rate
The tax rate: 20% on sales made within the first 365 days of ownership. The tax rate decreases gradually over the next 365 days, reaching 0% after 730 days of ownership.
Who is Affected
The tax applies to anyone selling property within BC, including individuals, corporations, partnerships, or trusts, regardless of residency.
Exemptions
There are certain exemptions for primary residences, but these come with specific conditions and filing requirements.