BC Home Flipping Tax in Effect
As of January 1st, 2025, the BC home flipping tax has come into effect! This tax applies to profit earned from selling a property in British Columbia, this includes pre-sale contracts, if the property was owned less than 730 days.
Key Details About the Tax
This tax is independent of federal property flipping regulations and is not integrated with either federal or British Columbia income tax systems. It is also distinct from the property transfer tax.
It applies regardless of whether the seller is a resident of British Columbia or located anywhere else in the world.
The tax covers properties that include housing units, properties zoned for residential use, or rights to acquire such properties (e.g., assignment of a purchase contract for pre-sale developments).
Certain property locations and transactions, such as leasing or the sale of a leasehold interest, are not subject to this tax.
Filing a BC home flipping tax return is a separate process from annual income tax filings. If the tax is applicable—or if an exemption requires documentation—a return must be submitted within 90 days of the sale.
Exemptions may apply, and the process for claiming them depends on the specific exemption:
Some exemptions require filing a return to confirm eligibility.
Others automatically apply without the need for filing.
To learn more, please refer to:
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