.png)
The BC government has introduced a new tax targeting short-term property sales. Effective January 1, 2025, the BC Home Flipping Tax aims to curb speculative real estate practices and ensure fair taxation on profits from rapid property transactions. This new measure applies to properties held for less than 730 days and impacts sellers both within and outside British Columbia. Here’s what you need to know about this tax and how it could affect your property transactions.
Key Information About the Tax
(Source: BCFSA)
The tax is separate from federal property flipping rules and is not harmonized or administered with federal or B.C. income tax. It is also separate and distinct from the property transfer tax.
The seller may be a B.C. resident or a resident anywhere else in the world.
The tax applies to properties with a housing unit, properties zoned for residential use, or the right to acquire the above properties, such as the assignment of a purchase contract for a pre-sale development unit.
The tax does not apply to exempt property locations or the leasing or sale of a leasehold interest in a property.
The BC home flipping tax return is separate and distinct from annual income tax filings. A return must be filed within 90 days of the sale if the tax applies, or if an exemption requires a return to be filed.
Exemptions are available, and depending on the exemption, the seller is either:
Exempt only after filing a return, or
Exempt without filing a return.
Additional Information
For further details and resources, please refer to the following:
ความคิดเห็น