BC Provincial Home Flipping Tax

Effective Date: January 1, 2025

The BC home flipping tax is a provincial initiative aimed at properties sold within two years of purchase. The key difference here is that while the federal tax applies to sales within 12 months, the BC tax applies to any sale made within two years of acquiring the property.

How it Works:

• The tax is applied to profits from the sale, and the tax rate declines based on how long the property is held.

Declining Tax Rate:

1. Properties sold within the first year:

• The highest tax rate applies—20% of the profit is taxed. This applies to properties sold within 365 days of purchase.

2. Properties sold between one and two years:

• After the first year, the tax rate decreases. Properties sold between 366 and 730 days after purchase will be subject to a 10% tax rate on the profit.

3. After two years:

• Properties held for more than two years will not be subject to the BC home flipping tax. After the two-year mark, no tax applies to the profit from the sale under this provincial law.

Acquisition Date:
For most properties, the acquisition date is the title transfer date, but in the case of presale contracts, the acquisition date is the contract signing date. This means that presale buyers could purchase a property and wait for two years (starting from the contract signing date) to avoid the BC flipping tax altogether.

Exemptions:
Like the federal tax, the BC home flipping tax provides exemptions for certain life circumstances, including:

• Death
• Divorce
• Illness
• Job relocation
• Changes to family size

In addition, those adding to the housing supply may qualify for an exemption. Builders or homeowners constructing additional units—such as basement suites or laneway homes—are eligible for relief from the tax even if they sell the property within the two-year window.