As of January 1, 2025, British Columbia’s Home Flipping Tax, officially known as the Residential Property (Short-Term Holding) Profit Tax Act, imposes a tax on profits from selling residential properties within two years of acquisition. The tax rate is 20% for sales within the first 365 days, decreasing over the next 365 days, and phasing out entirely after two years of ownership.

This tax also applies to pre-sale contracts—agreements to purchase property before it’s built. If you sell such a contract within 730 days of acquiring it, the profit is subject to the Home Flipping Tax. The tax rate follows the same structure as for residential properties: 20% within the first 365 days, decreasing over the next 365 days, and zero after two years.

Exemptions to this tax exist for certain situations, such as when the property is sold due to a change in life circumstances, including loss of employment or a significant family change. Additionally, developers and builders may be exempt if the property was sold as part of their business activities.

The intent of this legislation is to discourage rapid property reselling, aiming to make housing more affordable by reducing speculative investments.

For a more detailed understanding, you might find this video helpful: