Along the same lines as federal initiatives to target the resale of renovated homes held for short periods of time through assessments, which we have blogged about here, the government of British Columbia is now introducing a new tax on profits from sales of residential property in B.C. owned for less than two years!
Starting January 1, 2025, the new so-called “Home Flipping Tax” under the Residential Property (Short-Term Holding) Profit Tax Act, (the “Act”) will apply to residential properties sold within 730 days of purchase, with certain important exceptions. The tax is part of the B.C. government’s broader strategy to improve housing affordability in the province by discouraging short-term holding of property for profit.
Those active in B.C.’s residential real estate market should take note!