Confused about wat the new B.C. home flipping tax taking effect January 1, 2025 means to you, a Buyer?
The BC home flipping tax webpage is your best source of information, and you can subscribe to the page to be notified about updates!
Here are some scenarios for the tax that may help.
Remember, the tax comes into force on January 1, 2025, and applies for two years after a property is purchased.
In all scenarios, the Buyer purchases a home in March 2024.
1–The Buyer sells the home on December 24, 2024. No tax would be payable because the tax is not in force yet.
2–The Buyer sells the home on February 3, 2025. Tax is payable in this scenario, depending on the amount of profit and the timing. The faster the house is flipped, the higher the tax is.
3–The client sells the home in April 2026. No tax is payable because this is outside the two-year window.
4–The home purchased in March 2024 was a pre-sale. The Buyer is set to move in December 2026. If the Buyer assigns their contract to another buyer before March 2026, there will be tax payable as the contract was entered into in March 2024.
Though the tax doesn’t come into effect until 2025, you will need to know the implications of the tax if you plan to sell a recent purchase within that two-year window.
However, there are exemptions to the tax, and you should check the Government of B.C. home flipping website for full information. For detailed questions about the application of the tax to a specific transaction, you should seek independent professional advice.