- The tax applies from January 1, 2025 to anyone who sells taxable B.C. residential property, including presale contracts, owned for less than 730 days.
- The rate is 20% of net taxable income if held under 366 days and then declines for 366 to 729 days.
- A return is due within 90 days of the sale if the tax applies, and some exemptions, including life circumstance exemptions, apply only if a return is filed.
If you sold a British Columbia property not long after buying it, you may be wondering whether the home flipping tax applies to you. The answer depends mostly on how long you owned it, what kind of property it was, and whether an exemption fits your situation.
This article explains who pays, how the tax is calculated, and what exemptions and filing rules to know about. It is general information, and a lawyer or accountant can confirm how it applies to your sale.
This article covers the law of British Columbia.
Who pays and what counts as a flip
The tax applies from January 1, 2025 under the Residential Property (Short-Term Holding) Profit Tax Act. It applies to anyone, whether an individual, corporation, partnership or trust, and whether resident or not, who sells or otherwise disposes of taxable B.C. residential property owned for less than 730 days. Presale contracts are included.
So a sale is a flip for tax purposes based on the holding period, not on your intentions. Selling a house you bought 18 months ago because your job moved is still within the 730-day window, though an exemption or deduction may reduce or remove the tax.
How the tax is calculated
The rate is 20% of net taxable income for property held under 366 days. For 366 to 729 days it is 20% × [1 − ((days held − 365) / 365)], rounded to the nearest one-thousandth of a percent. Nothing is payable at 730 days or more.
| Days held | Rate |
|---|---|
| 365 or fewer | 20% of net taxable income |
| 366 to 729 | 20% × [1 − ((days held − 365) / 365)] |
| 730 or more | Nothing payable |
To use the formula, subtract 365 from the number of days you held the property, divide the result by 365, subtract that from 1, then multiply by 20%. The longer you hold, the lower the rate, falling to nothing at 730 days.
If you held the property at least 365 consecutive days, lived in a housing unit in it as your primary residence and held it under 730 days, up to $20,000 may be deducted from taxable income. This deduction is not available on assigning a presale contract, and it is proportionate if only part of your interest is disposed of.
Exemptions: with and without a return
Some situations need no return at all:
- Reserves under the Indian Act, Nisga'a and other treaty First Nation lands.
- Listed exempt entities such as registered charities, co-operative associations, governments, Indigenous Nations, and certain housing and non-profit corporations.
- Beneficiaries of REITs.
- Property used exclusively for a commercial purpose for the entire holding period.
Other exemptions apply only if you file a return. These are life circumstance exemptions, builders and developers and building or renovating activity, and dispositions between related persons. Presale contracts do not qualify for the builder, developer, building or renovation, or exclusive commercial use exemptions.
Divorce, death and other life events
There is a category of life circumstance exemptions, and you must file a return to claim one. Whether your separation, a death in the family or another event qualifies depends on the specific wording of the rules, so check the official list or ask a lawyer before assuming either way.
A transfer between related persons is also an exemption that applies only if a return is filed. If you sold to a third party after a separation, do not assume the exemption covers you without confirming.
Filing and next steps
A flipping tax return is due within 90 days of the sale if the tax applies, or if an exemption applies only after filing. It is separate from your annual income tax return.
Because the life circumstance, builder or developer, and related-person exemptions apply only if a return is filed, filing on time matters even when you believe no tax is owing. The rate is applied to your net taxable income, so it is worth getting that figure checked by a lawyer or accountant.
- Count the days from your ownership start to the sale date.
- Note whether the sale was of a presale contract.
- Work out whether a no-return or return-required exemption might fit.
- Check whether you lived in the home for the deduction.
- Diarize 90 days from the sale for the return.
- Speak with a lawyer or accountant about your net taxable income.
Frequently asked questions
Does the BC home flipping tax apply if I sold after more than two years?
No. The tax applies to property owned for less than 730 days, and nothing is payable at 730 days or more.
Do I need to file a return if I think an exemption applies?
Sometimes. Some exemptions, such as those for reserves or registered charities, need no return, but life circumstance, builder or developer, and related-person exemptions apply only if a return is filed.
When is the return due?
Within 90 days of the sale if the tax applies, or if an exemption applies only after filing. It is separate from your annual income tax return.
Does the tax apply to non-residents or corporations?
Yes. It applies to individuals, corporations, partnerships and trusts, whether resident or not.
Sources
- gov.bc.ca – BC home flipping tax — www2.gov.bc.ca
- gov.bc.ca – Calculate your BC home flipping tax — www2.gov.bc.ca
- gov.bc.ca – Exemptions from the BC home flipping tax — www2.gov.bc.ca
Links go to official government, court and regulator pages. The law changes — confirm you are reading the current version.
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A home purchase with us is from $1,900.88, tax included. Third-party fees are extra.