What You Need to Know About the New BC Home Flipping Tax

Starting January 1, 2025, the new B.C. home flipping tax comes into effect. If you’re unsure about what this means for you and your property investments, Hilbert&Crick is here to help.

Key Information for Home Sellers

If you’re considering selling a recent purchase, it’s important to be aware of this new tax. The BC home flipping tax webpage is your best source for detailed information, and you can subscribe to receive updates.

Scenarios to Illustrate the New BC Home Flipping Tax

Here are some scenarios that might help clarify how the tax could affect you. Keep in mind, that the tax starts on January 1, 2025, and applies for two years after a property is purchased.

Scenario 1:

Purchase Date: March 2024
Sale Date: December 24, 2024
Outcome: No tax payable, as the tax is not yet in force.

Scenario 2:

Purchase Date: March 2024
Sale Date: February 3, 2025
Outcome: Tax is payable. The amount depends on the profit and timing; quicker flips incur higher taxes.

Scenario 3:

Purchase Date: March 2024
Sale Date: April 2026
Outcome: No tax payable, as the sale occurs outside the two-year window.

Scenario 4:

Pre-Sale Purchase Date: March 2024
Move-In Date: December 2026
Outcome: If you assign your contract to another buyer before March 2026, tax is payable since the contract originated in March 2024.

Although the tax doesn’t take effect until 2025, it’s crucial to understand its implications if you plan to sell a recent purchase within the two-year period.

Exemptions and Seeking Professional Advice for the New BC Home Flipping Tax

There are exemptions to this tax, and it’s a good idea to check the Government of B.C. website for full information. For detailed questions about how the tax applies to your specific situation, we recommend seeking independent professional advice.

By staying informed and understanding these new rules, you can make better decisions about your property investments. Feel free to reach out if you have any questions or need further assistance.