B.C. home-flipping tax goes into effect
Patrick Flannery January 2, 2025
Canadian Contractor
B.C. has introduced the Residential Property (Short-term Holding) Profit Tax Act, commonly referred to as the B.C. home-flipping tax. The government says the legislation is meant to discourage investors from buying housing only to turn a quick profit. Income from residential property resold within two years is subject to the tax. Homes sold within a year of being purchased will be subject to a 20 percent tax on any profit, declining to 10 percent the following year and no tax thereafter. B.C. says seven percent of the homes sold in B.C. between 2020 and 2022.
“Homes are meant to be lived in by people in our communities, not used for speculation,” said Ravi Kahlon, Minister of Housing. “While some want to allow speculation in the housing market, allowing speculators to make a quick profit – we know that people can’t afford that. We will keep building up supply and take action on the driving forces behind rising prices, including speculation.”
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