A New Year A New Tax

A New Year A New Tax: 

As of January 1, 2025, the BC Government Residential Property Short-Term Holding Tax Act applies or as it is more colloquially called: "The BC Flipping Tax" to properties sold after being owned less than 730 days. 

Here’s how it works: 

• The tax applies to income from sales of residential properties, presale contracts, or assignments owned for less than 730 days (two years). This includes properties bought before January 1, 2025, if they are sold on or after that date and owned for less than two years.  

• The rate is 20 per cent for sales within the first 365 days of ownership, gradually decreasing until it is eliminated at 730 days.  

• This tax applies to any person or entity (individual, corporation, partnership, or trust) selling property within BC, regardless of residency.  

• Exemptions include certain primary residences, though exemptions are subject to specific conditions and filing requirements. 

• Documentation must be filed and paid within 90 days of the sale. Seek legal and accounting advice for questions or concerns.

The BC Government has released a new video about the tax that provides a good overview of the new tax rule.

Click here here to view.