13 Mar BC Home Flipping Tax
The BC Government announced in its 2024 Budget on February 22, 2024, that it proposes implementing a Home Flipping Tax starting January 1, 2025. The tax will apply to income from selling properties zoned for residential use with a housing unit and on the assignment of contracts to purchase these units. The tax will not apply to land or portion of land used for non-residential purposes.
Properties sold after January 1, 2024, will be subject to the tax if purchased within two years of the sale. The tax rate will be 20% for properties sold within 365 days of the purchase and will decline to zero for sales between 366 and 730 days. A maximum of $20,000 can be excluded when calculating their taxable income from the sale.
There are exceptions for certain life events that might require a sale within two years, such as:
- Death
- Disability or illness
- Divorce or separation
- Relocation for work
- Involuntary job loss
- Change in household, etc.
This new BC Home Flipping Tax would be in addition to the federal Property Flipping Tax, effective for the 2023 taxation year.
