BC Home Flipping Tax

The BC Home Flipping Tax, introduced under the Residential Property (Short-Term Holding) Profit Tax Act, came into effect on January 1, 2025. This tax applies to profits made from the sale of properties owned for less than 730 days and is designed to discourage speculative property sales, supporting long-term housing stability in British Columbia.

This tax is distinct from federal property flipping rules and is administered independently of income tax regulations.

Who is Subject to the Tax?

Any individual, corporation, partnership, or trust that sells a property in British Columbia within 730 days of purchase may be subject to this tax. This applies to:
• Residential properties (e.g., single-family homes, condos).
• Presale contracts (e.g., pre-build condos).
• Zoned residential properties.

The tax applies regardless of whether the seller is a resident of B.C. or resides elsewhere in the world.

Examples:
If you purchased a property on May 1, 2023 and sold it on January 31, 2025 (642 days of ownership), the profit is taxable.
If the same property is sold on or after June 1, 2025 (762 days of ownership), the tax no longer applies.

Click here to continue reading about Key Highlights of the tax....