bc home flipping tax
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BC Home Flipping Tax

If you’re a buyer considering purchasing a property for the short-term or a seller looking to sell within the first 730 days of ownership, there’s an important new tax you need to know about.

Starting January 1, 2025, the BC Home Flipping Tax will apply to certain property transactions, and it’s important to understand how it could impact your decisions. Here’s a quick breakdown of what you need to know. The BC Home Flipping Tax applies to income from selling or assigning a property within the first two years (730 days) of ownership. This includes properties bought before January 1, 2025, if they are sold on or after that date and owned for less than two years, unless the property is exempt. This new tax is separate from the federal property flipping tax and is calculated independently of federal or provincial income tax systems. 

Overview of Key Points

1. Taxable Transactions 
The BC Home Flipping Tax generally applies to income earned from the sale of:  
Properties with a housing unit. 
Properties zoned for residential use. 
The right to acquire the above properties, such as the assignment of a purchase contract for a pre-build condo building 

2. Tax Rates and Ownership Periods 
Properties sold within 365 days are subject to a 20 per cent tax on the profit earned. The tax rate decreases gradually until the 730-day mark, at which point the tax no longer applies. 

3. Exemptions 
Certain exemptions may apply under the BC Home Flipping Tax.  Exemptions may either apply automatically or require filing a BC Home Flipping Tax return, depending on the specific exemption. Sellers must file a return within 90 days of the sale, if they are subject to the tax or if they are claiming exemptions that require filing. Details are available here

Be aware of the BC Home Flipping Tax and its potential impact on transactions. 
If you are considering purchasing a property for short-term holding or selling a property within two years of purchase, consult with a tax and legal professional. This will help you understand how applicable taxes may affect your specific transaction. 

Check links to official resources, such as the BC Home Flipping Tax page on the BC Government website for accurate and up-to-date information. 
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