“B.C. home flipping tax” bill tabled in B.C. legislature
The B.C. government tabled legislation yesterday which would introduce its proposed “home flipping tax”. First announced in the province’s 2024 budget (and discussed in greater detail in our previous blog post), the draft legislation was contained in Bill 15 – 2024 Budget Measures Implementation (Residential Property (Short-Term Holding) Profit Tax) Act, 2024 (“Bill 15”).
As proposed, the B.C. home flipping tax would apply to income from the sale of certain residential properties owned for less than 730 days (i.e., two years) as of the time of sale. The tax rate would be up to 20% of the income earned from the sale (in the case of a property sold within 365 days of acquisition), with a declining rate applying for properties sold between 365 to 730 days after acquisition. Certain specified owners (e.g., charities and Indigenous nations) are exempt. If enacted, the new tax will apply to property sales occurring on or after January 1, 2025.
In conjunction with tabling Bill 15, the province of B.C. released updated guidance on the proposed home flipping tax. The guidance confirms that the tax would be separate and distinct from the federal “flipped property” rules, and is not harmonized or administered with the federal or B.C. income tax.
A more detailed review of the proposed home flipping tax will be posted on our blog in short order.