Starting January 1, 2025, the new BC Home Flipping Tax will add another layer of tax consideration for British Columbians who sell residential property within a short timeframe. This tax will be in addition to the existing federal property flipping tax introduced by the Canada Revenue Agency in 2023. While there are similarities between the two taxes, they differ significantly in terms of applicability, administration, and exemptions.
The tax is imposed under the Residential Property (Short-Term Holding) Profit Tax Act, which takes effect starting January 1, 2025.
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.
The BC home flipping tax is separate and distinct from the federal property flipping rules and is not harmonized or administered with the federal or B.C. income tax. It is intended to discourage short-term holding of property for profit as part of the Homes for People Plan.
