The BC Government announces new flipping tax

Starting January 1st, 2025 the BC Home Flipping Tax will impose a 20% levy on profits from selling a home within a one year timeframe, with a pro rated tax for sales occuring within two years. This tax applies to both properties and contract assignments, supplementing any existing federal or provincial income taxes related to tproperts sales, including the federal anti flipping tax,

Certain exeptions are avilable for specific life circumstances such as the creation of rental accessory dwelling units, which may propmpt the sale within two years.

Initial analysis by the BCREA Economics Department suggests that this tax will marginally decrease home sales by 1-2% over three years, with minimal impact on prices and housing accessibility, given that short-term flipping represents a small fraction of overall sales activity (less than 2% in Vancouver and Victoria). However, the tax may influence some potential sellers to delay listing their properties, leading to reduced inventory levels and potential price increases compared to a scenario without the tax.

Questions?

Contact: [email protected] \ 604-763-8898