BC Home Flipping Tax: What Sellers Need to Know
The B.C. government has released full details for its BC Home Flipping Tax, which takes effect on January 1 2025. The levy delivers on a Budget 2024 promise to clamp down on rapid “flip” sales that can push prices higher for end‑users. While Ottawa already taxes properties resold within a year, Victoria’s measure goes further—capturing any profit made on a residential property sold in under two years.
Background
Housing affordability remains one of the most pressing issues in Metro Vancouver and across the province. In its February 2024 budget, the province said roughly 7 % of B.C. home sales between 2020 and 2022 were flipped within two years, inflating prices and crowding out buyers (BC Gov News). The Home Flipping Tax is the latest plank in the Homes for People Plan, joining the Speculation & Vacancy Tax and the Foreign Buyer Ban in targeting non‑resident or short‑term investors.
How the tax works
The tax applies to the net taxable income from selling or assigning residential property held for less than 730 days:
- 20 % on profits from properties sold within 365 days of purchase.
- A sliding scale from 20 % to 0 % for sales occurring between day 366 and day 730.
Owners must file a separate Home Flipping Tax return within 90 days of closing. The tax is in addition to federal income tax and B.C.’s Property Transfer Tax.
Who’s exempt?
Life can change quickly, so the Act carves out exemptions for:
- Death, divorce or separation
- Serious illness or disability
- Relocation for work (≥100 km)
- Involuntary job loss or insolvency
- Adding residential density (e.g., adding a suite)
- Building or selling new housing as a primary business
Primary residences may also qualify for a partial deduction that reduces the taxable profit.
Why it matters
- Signals the province’s intent to deter quick resales and speculative assignments.
- Could lengthen average holding periods, moderating price swings in hot neighbourhoods.
- Adds another line item to closing costs for investors and renovator‑flippers.
- Reinforces Ottawa’s one‑year anti‑flipping rule but applies for twice as long.
This article is for informational purposes only. Statistics and market conditions are current as of the publication date and may change without notice. It is not legal or financial advice. Always verify details and consult qualified professionals before making real-estate decisions.
The B.C. government has released full details for its BC Home Flipping Tax, which takes effect on January 1 2025. The levy delivers on a Budget 2024 promise to clamp down on rapid “flip” sales that can push prices higher for end‑users. While Ottawa already taxes properties resold within a year, Victoria’s measure goes further—capturing any profit made on a residential property sold in under two years.
Background
Housing affordability remains one of the most pressing issues in Metro Vancouver and across the province. In its February 2024 budget, the province said roughly 7 % of B.C. home sales between 2020 and 2022 were flipped within two years, inflating prices and crowding out buyers (BC Gov News). The Home Flipping Tax is the latest plank in the Homes for People Plan, joining the Speculation & Vacancy Tax and the Foreign Buyer Ban in targeting non‑resident or short‑term investors.
How the tax works
The tax applies to the net taxable income from selling or assigning residential property held for less than 730 days:
- 20 % on profits from properties sold within 365 days of purchase.
- A sliding scale from 20 % to 0 % for sales occurring between day 366 and day 730.
Owners must file a separate Home Flipping Tax return within 90 days of closing. The tax is in addition to federal income tax and B.C.’s Property Transfer Tax.
Who’s exempt?
Life can change quickly, so the Act carves out exemptions for:
- Death, divorce or separation
- Serious illness or disability
- Relocation for work (≥100 km)
- Involuntary job loss or insolvency
- Adding residential density (e.g., adding a suite)
- Building or selling new housing as a primary business
Primary residences may also qualify for a partial deduction that reduces the taxable profit.
Why it matters
- Signals the province’s intent to deter quick resales and speculative assignments.
- Could lengthen average holding periods, moderating price swings in hot neighbourhoods.
- Adds another line item to closing costs for investors and renovator‑flippers.
- Reinforces Ottawa’s one‑year anti‑flipping rule but applies for twice as long.
This article is for informational purposes only. Statistics and market conditions are current as of the publication date and may change without notice. It is not legal or financial advice. Always verify details and consult qualified professionals before making real-estate decisions.
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