On January 1, 2025, the BC home flipping tax came into effect. This tax applies to any profit made from selling a property in British Columbia, including pre-sale contracts, if the property was owned for fewer than 730 days.
Key Information About the BC Home Flipping Tax
- This tax is separate from federal property flipping rules and is not linked to or administered alongside federal or provincial income taxes. It also operates independently from the property transfer tax.
- The seller may be a resident of British Columbia or from anywhere else in the world.
- The tax applies to properties that include a housing unit, properties zoned for residential use, or the right to acquire such properties (e.g., through the assignment of a purchase contract for a pre-sale development unit).
- The tax does not apply to exempt properties, nor does it apply to the leasing or sale of leasehold interests in properties.
- The BC home flipping tax return is separate from annual income tax filings. A return must be filed within 90 days of the sale if the tax applies, or if an exemption requires a return to be filed.
- Exemptions are available. Depending on the exemption, the seller may be:
- Exempt only after filing a return, or
- Exempt without filing a return.
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