The BC Home Flipping Tax is effective for dispositions on or after January 1, 2025. Information about the tax can be found at the BC Provincial Government webpage https://www2.gov.bc.ca/gov/content/taxes/income-taxes/bc-home-flipping-tax.
This tax applies to all residential property held for less than 730 days unless an exemption applies and requires a return separate from income tax filings. Returns are due within 90 days of sale. Taxable properties include properties with a housing unit, properties zoned for residential use and any right to acquire such properties. Leases, or sales of leasehold interests, would not attract the tax. There are various exemptions from the tax, and some of the exemptions apply only after filing a return to report the disposition and claim the exemption. Where a return or payment of the tax is late, penalties and interest apply.
ACTION: If you are disposing of a residential property that you have owned for less than 730 days, be mindful of this tax as the seller and consult your real estate advisor, lawyer or us for further advice.
