New Additions to the 2024 British Columbia Budget - Part 1/3: Home Flipping Tax
Part 1/3 - New Home Flipping Tax Introduced in 2024 BC Budget
This 3-part series breaks down the new budget introduced by British Columbia’s Finance Minister last week, which implements a few new items to note for the upcoming years. While there are no adjustments to corporate or personal tax rates in the budget, it does unveil a fresh home flipping tax for B.C. properties sold starting January 1, 2025, alongside raised thresholds for property transfer tax exemptions and an exemption for purpose-built rentals.
The new home flipping tax applies only to the sale of residential real estate in British Columbia that was held less than two years after buying it.
Home Flipping Tax
The new home flipping tax applies only to the sale of residential real estate in British Columbia that was held less than two years after buying it. This tax is applicable to all sellers whether a BC resident or a resident outside of the province, and will come into effect starting January 1, 2025. The tax applies to selling houses or properties meant for living in, including contracts to buy them. However, if you're selling land for something other than living on, you won't have to pay this tax.
Exemptions
The budget does highlight some exemptions that will be available for those who experience certain unexpected life situations such as:
Separation or divorce
Death
Disability or Illness
Relocation for work
Involuntary job loss
Change in household membership
Personal safety
Insolvency
While the budget offers this list of exemptions, a more complete list is expected to be announced along with further details regarding the tax and legislation to enact this measure is expected to be announced in early spring.
Access an overview of the new budget here.
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