31 May BC’s New Home Flipping Tax

A new item came out of the 2024 Provincial budget announcement, the B.C. Home Flipping Tax, which takes effect January 1, 2025, subject to approval by the legislature. A tax designed to deter speculative practices, this tax targets properties that are rapidly bought and sold within a less than 730-day window (approximately 2 years). Its core aim is to put the brakes on profit-driven transactions that do little to contribute to housing stability. It’s important to note that 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 B.C. 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.

So, how does it work? Homeowners who purchase a property and subsequently sell it within two years may find themselves subject to this tax. The tax rate isn’t set in stone, though, as it varies depending on factors like residency status, property value, and whether the property remains vacant. Some exemptions are being put in place to ease the burden.

For homeowners and investors, staying abreast of the tax’s nuances, exemptions, and compliance requirements is important. By staying informed and seeking professional guidance from legal and accounting professionals when needed, individuals can navigate this evolving real estate terrain with confidence.

If you’d like more information, reach out to us at Sitka Law Group for a free initial consultation. Victoria Lawyers, Sitka Law Group is conveniently located on Shelbourne Street near the intersection of the borders of Victoria, Oak Bay and Saanich.