BC Home Flipping Tax in Effect

BC Home Flipping Tax

As of January 1, 2025, the BC Home Flipping Tax is now in effect. The tax applies to the profit you earn from selling a property in British Columbia (including presale contracts) if you owned the property for less than 730 days.

This new tax is distinct from the existing federal property flipping tax and specifically targets short-term property sales within British Columbia.

Here’s how it works: 

• The tax applies to income from sales of residential properties, presale contracts, or assignments owned for less than 730 days (two years). This includes properties bought before January 1, 2025, if they are sold on or after that date and owned for less than two years.  

• The rate is 20 per cent for sales within the first 365 days of ownership, gradually decreasing until it is eliminated at 730 days.  

• This tax applies to any person or entity (individual, corporation, partnership, or trust) selling property within BC, regardless of residency.  
• Exemptions include certain primary residences, though exemptions are subject to specific conditions and filing

  requirements.

As with all tax related items, please make sure to speak to your legal or tax specialist to understand how this may affect your transaction.