It will soon be a year since the B.C. Government announced, in its 2024 budget, details of a new tax on home buyers who buy and sell properties to make a quick profit. Now, what has been labelled the “B.C. Home Flipping Tax” goes into effect on January 1.
Last February, the announcement stated that any profits made from the sale of a residential home within two years of buying it will be subject to the tax – with exceptions. The then-proposed tax, passed on April 25, will be as follows: (a) 20 per cent on homes sold within one year of purchase (b) 10 per cent if sold after a year and a half.
The BC 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. It is intended to discourage short-term holding of property for profit as part of the Homes for People Plan.
It applies to all taxable properties sold on or after January 1.
Exceptions range from changes for people whose life circumstances change to qualifying builders and developers to secondary homes that are at least 100 kilometres from the primary residence.
Questions can be addressed to the Government either by email addresses too ITBTaxQuestions@gov.bc.ca or by phone (250-387—3332).