Starting January 1, 2025, the BC Home Flipping Tax aims to deter speculative property flipping and stabilize the housing market.
The tax applies to profits from selling residential properties, including presale contracts, held for less than 730 days (two years). Sales within the first year face a 20% tax rate, decreasing until eliminated at the two-year mark. Properties sold on or after January 1, 2025, are subject to this tax, regardless of purchase date.**This is an additional tax on top of the Federal Flipping Tax**
Exemptions
There may be exemptions for sellers from the tax due to certain life, including:- Divorce or separation
- Death of the owner or a related person
- Serious illness or disability
- Job relocation (40+ km)
- Job loss, insolvency, or safety concerns
- Birth or adoption of a child
Comparison: BC vs. Federal Flipping Tax
The BC Home Flipping Tax differs from the federal Property Flipping Tax (2023):- Federal Property Flipping Tax: Applies to properties held <365 days; profits taxed as business income.
- BC Home Flipping Tax: Applies to properties held <730 days; exemptions include broader life events like relocation.
Sources
