New Tax on Flipping Homes In Around Town
As of January 1, 2025, profits on residential properties sold within two years of their purchase will be subject to a new BC tax.
The tax is one of 20 pieces of legislation the government introduce in its next session, and must be passed to become law. If passed, the tax would apply to properties purchased before 2025.
As proposed, sellers would be taxed 20% for properties sold within a year of purchase and 10 per cent after owning a home for a year and a half. The tax would lift after two years of ownership.
The tax will apply to income from the sale of properties with a housing unit and properties zoned for residential use. It also applies to income made from condo assignments. It does not apply to land or portions of land used for non-residential purposes, according to the government’s budget documents.
Exemptions under the tax will include life circumstances such as separation, divorce, death, disability or illness, relocation for work, involuntary job loss, change in household membership, personal safety or insolvency.
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