January 1, 2025 means the launch of the new “anti-flipping tax rule” in British Columbia applicable under the Residential Property (Short-Term Holding) Profit Tax Act (the “Act”).  Generally speaking, the new Act will serve to tax property owners who sell a property with less than two years of ownership (there are various situations that are considered a sale including the transfer of a beneficial interest in a property for consideration in money or kind). 

While there are certain exemptions, having knowledge of the exemptions and requirements to obtain the exemption will be important as some are automatically exempt while others need to be declared on a return.

Where taxable, the profits made on the sale will be subject to a tax up to 20% of the profits made and the tax may be applicable, regardless of when the property was acquired (i.e. it does not apply just to properties acquired after January 1, 2025).

The BC system is separate and distinct from the federal tax requirements so property owners are well advised to discuss potential property sales with their accounting professionals early to ensure they are aware of the totality of the tax implications.  As well, specific filing timelines apply so it’s key that (the return must be filed within 90 days of the sale of the property)

More details can be found here: BC home flipping tax – Province of British Columbia

This information is general in nature only. You should consult a lawyer before acting on any of this information. This information should not be considered as legal advice. To learn more about your legal needs, please contact our office at (250)448-2637 or any of our lawyers practicing in the area of real estate at the following:

Elizabeth Ford: elizabeth@touchstone.law

Una Kuzio: una@touchstone.law