What You Need to Know About the BC Home Flipping Tax - British Columbia Real Estate Association

What You Need to Know About the BC Home Flipping Tax

January 21, 2025

The BC Home Flipping Tax went into effect on January 1, 2025. But why has this tax been introduced and what are its implications? In this video, BCREA CEO Trevor Koot offers the full breakdown.

Transcript

As of January 1, 2025, there is a new housing tax in British Columbia: The BC Home Flipping Tax. If you’re getting deja vu, there’s a simple reason for that.

In January 2023, the Government of Canada launched a federal property flipping tax, which is still in effect. So, if you’re in BC and renovating a home with the intention of selling it, you now have two flipping taxes to consider.

So, what’s the point of this new provincial tax? And what are its implications?

Here’s the gist: The new BC tax targets income from the sale of residential properties, presale contracts, or assignments held for less than two years – though there are some key exemptions. The tax rate starts at 20 per cent for sales within the first 365 days of ownership, then gradually decreases until it’s eliminated at 730 days, or two years.

The BC Government’s stated goal for the tax is to curb speculation at a time when many are struggling to afford appropriate shelter. That said, many doubt whether it can achieve that goal.

A recent BC Real Estate Association Market Intelligence report noted that flipping activity is an insignificant share of overall sales in the province, meaning the new tax will have minimal impact on prices. The report also warned that the tax could cause some sellers to delay listing their homes and lead to even tighter market conditions.

It’s with that research in mind that BCREA’s Government Relations team recommended a repeal of the tax in the lead-up to the 2024 BC election.

Like it or not, this new tax is now in effect, and both REALTORS® and the public need to be aware of the rules. For more on this and all things BC real estate, visit the BCREA website at bcrea.bc.ca.

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