B.C. Flipping Tax Coming

CBC News Vancouver has a great article that summarizes the new flipping tax the Provincial Government in BC is introducing later this year.

Click here for a direct link to the article BC to tax sellers who flip property after 2 years or less

Key points on this new tax mentioned in the article include:

  • tax rate will be 20% for properties sold within one year of purchase
  • the tax rate slides down to zero between 366 and 730 days after acquisition but would still be 10% even after a year and a half of ownership
  • The plan is to have it in effect for properties sold on or after Jan. 1, 2025 and will also apply to properties purchased before then.
  • The tax will apply to income from the sale of properties with a housing unit and properties zoned for residential use. It also applies to income made from condo assignments.
  • It does not apply to land or portions of land used for non-residential purposes, according to the government's budget documents.
  • Other exemptions under the tax include life circumstances such as separation, divorce, death, disability or illness, relocation for work, involuntary job loss, change in household membership, personal safety, or insolvency.
  • The tax is to be paid in addition to any federal or other provincial income taxes incurred from the sale of property.
Here's a video from Global News on the same topic:

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