BC Home Flipping Tax
Starting January 1,2025 the provincial government has put in another tax targeted at the housing market. In an attempt to discourage speculators, a tax on homes sold within two years of buying it will be imposed.
Property purchased before the tax’s effective date may be subject to the tax if sold on or after January 1, 2025 and owned for less than 730 days, unless an exemption applies.
*** This property flipping tax is separate from the federal flipping tax
Who is subject to the tax?
After January 1, 2025 if a person (including an individual, corporation, partnership or trust) sells or disposes of property, the profit earned from the sale would be subject to the new tax.
Exemptions from the tax
You may not need to pay the tax if you are eligible for an exemption. Depending on your exemption, you are either exempt only after filing a return, or can be exempt without filing a return.
- Life circumstance exemptions
- Exemptions for builders, developers, and building or renovating related activity
- Exemptions for property sales between related persons
How the tax is calculated
The BC home flipping tax applies to net taxable income from the sale of taxable property that was owned for less than 730 days.
The tax rate is 20 percent of net taxable income earned from a property sold within 365 days, the rate will decrease over the next 365 days.
Tax rate = 20% × [ 1 – ( (Days held – 365) / 365) ]
Here is a quick step-by-step calculation.
Days of ownership for presale contracts
The day you sign the presale contract, is the date you pay for the contract.
If you purchased or were assigned a presale contract and then purchase the completed property, the date you purchased or were assigned the presale contract is also considered to be the date you purchased the completed property.
