A New Year Brings a New Tax
The BC NDP government has introduced a Home Flipping Tax effective January 1, 2025. This provincial tax is distinct from the existing federal home flipping tax and is unlikely to significantly address housing affordability. Unfortunately, this policy may inadvertently deter housing transactions, further tightening supply in an already constrained market.
The details:
The tax applies to income from sales of residential properties, presale contracts, or assignments owned for less than 730 days (two years). This includes properties bought before January 1, 2025, if they are sold on or after that date and owned for less than two years.
The rate is 20 per cent for sales within the first 365 days of ownership, gradually decreasing until it is eliminated at 730 days.
This tax applies to any person or entity (individual, corporation, partnership, or trust) selling property within BC, regardless of residency.
Exemptions if available are subject to specific conditions and filing requirements.
Did you know:
Most monthly mortgage payments today are now on average 25% lower than they were 1 year ago