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ARTICLE · 13 MARCH 2025

British Columbia Home Flipping Tax

Lindsay Kenney LLP
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On January 1, 2025, the Residential Property (Short-Term Holding) Profit Tax Act (the "Flipping Tax Act") came into force.

CanadaReal Estate and Construction
Albert Chiu
Albert Chiu
Leona Lo
Leona Lo

On January 1, 2025, the Residential Property (Short-Term Holding) Profit Tax Act (the "Flipping Tax Act") came into force. This new legislation has implications for BC homeowners, buyers, and real estate investors alike. Here is what you need to know.

What is it?

The Flipping Tax Act taxes the profit that a seller earns from selling residential property in BC (including assigning pre-sale contracts), if the residential property is owned for less than 730 days (the "Flipping Tax"). The Flipping Tax Act intends to cool the BC real estate market and curb speculative residential property purchases.

How much is the Flipping Tax?

The Flipping Tax is 20% of net taxable income earned from a property sold within 365 days of acquiring ownership. If you have owned the property for more than 365 days and less than 730 days, the tax rate is reduced over time according to the formula below until it reaches a zero rate on the 730th day:

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About Mackrell International – Canada - Lindsay Kenney LLP is a full service business law firm with offices in Vancouver and Langley, BC and a member of Mackrell International. Mackrell International – Canada is comprised of four independent law firms in Alberta, British Columbia, Ontario and Quebec. Each firm is regionally based and well-connected in our communities, an advantage shared with our clients. With close relations amongst our Canadian member firms, we are committed to working with clients who have legal needs in multiple jurisdictions within Canada.

This article is intended to be an overview and is for informational purposes only.

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