BC Home Flipping Tax

What It Is:

  • A tax on profits from selling residential property owned for less than 730 days.
  • Effective from January 1, 2025, under the Residential Property (Short-Term Holding) Profit Tax Act.

Who It Applies To:

  • Individuals, corporations, partnerships, or trusts that sell properties in BC after owning them for less than 730 days.
  • Includes non-residents of BC or Canada.

What Is Taxed:

  • Profits from selling residential properties, including presale contracts and properties zoned for residential use.

Tax Rates:

  • 20% tax on net taxable income for properties sold within 365 days.
  • Tax rate decreases over the next 365 days.
  • No tax after 730 days of ownership.

Exemptions:

  • Specific exemptions may apply (e.g., primary residence deduction or related party transfers).
  • Exemption eligibility depends on circumstances and may require filing a tax return.

Primary Residence Deduction:

  • Up to $20,000 deduction if:
    • Property was owned for at least 365 days.
    • Property was used as a primary residence.

Days of Ownership:

  • Starts on the purchase date (usually the closing date).
  • Ends on the sale date (closing date for the sale).

Presale Contracts:

  • Ownership starts from the date the contract was signed or assigned.

Filing Requirements:

  • A tax return must be filed within 90 days if the tax applies or if an exemption is claimed after filing.
  • No filing required if:
    • Property owned for more than 729 days.
    • Exemption applies without filing.

Exempt Transactions:

  • Does not apply to leases, gifts, liens, or changes in legal title without beneficial ownership transfer.
Latest Guide
Trending Topic

Compare listings

Compare
Property

Register as Our VIP User & Receive Early info and incentives

Please enter accurately in order for us to serve you better

By submitting, you have read and agreed to our Privacy Policy & Terms of Use.

OUR LISTING PROCESS

Clear and stress-free steps to guide you through the complexity of listing your property on the market, public or private.

STEP 1

Fill out the Seller inquiry form

This is your initial contact point. Submit the listing inquiry form, and we will reach out to you via email or phone to schedule a discovery call. You can also specify a preferred time for us to call you back in the message field.

STEP 2

Two way discovery

We will ask you a series of questions to determine the best approach for selling your property. We will also provide details on our listing strategies and packages for you to choose from. Additionally, this step allows you to ask any questions you may have about our process.

STEP 3

You pick how you'd like to proceed

Once you have a day or two to digest everything we discussed, we’d love to hear your decision. Let us know: 1. Which strategy you’d like us to implement for selling your property. 2. Which Tiered Service Level best suits your needs, so we can tailor our approach accordingly.

STEP 4

Reporting and pricing your property

After receiving a clear intention from you, we will proceed with conducting a Comparative Market Analysis and providing you with a detailed report. This report will help us determine the most effective pricing strategy for your property. This step can be completed either in person or remotely.

STEP 5

Decision and contract

At this stage, you will have gathered all the necessary information about our process, costs, strategies, and your property's value. The decision on pricing, listing duration, and other details is entirely up to you. To comply with the Real Estate Act and regulations, we will need to meet in person for the listing contract signing.

STEP 6

Listing preparation

Depending on the chosen service level, we will conduct a property photo shoot, 3D tour scan, floor plan measurements, brochure printing, and/or staging before the listing goes live to the public

STEP 7

Listed!

Your listing is live! The listing process is now complete, and we are moving full steam ahead with advertising, digital promotions, and social media marketing. At this stage, we are fully engaged in the 'Sales Process,' which includes open houses, private showings, offer negotiations, and more.