The B.C. home flipping tax: what sellers need to know

Under the Residential Property (Short-Term Holding) Profit Tax Act, effective January 1, 2025, British Columbia taxes the profit from selling residential property held for less than 730 days. It is separate from, and in addition to, the federal anti-flipping rules, income tax, and property transfer tax.

Who it applies to

The tax applies to individuals, corporations, partnerships, and trusts, to B.C. residents and non-residents alike. It covers residential property and presale-contract assignments.

Watch the retroactive reach. A property bought before January 1, 2025 can still be taxed if it is sold on or after that date and was held under 730 days. The trigger is the sale date, not the purchase date.

How the rate works

The tax applies to your net profit (sale price less purchase cost, eligible selling costs, and any primary-residence deduction), not the sale price. The rate is highest in the first year and slides to zero by the two-year mark.

Between day 366 and day 729, the rate phases down in a straight line:

Even reaching the 366 to 729 day window roughly halves the rate compared with a first-year sale, and holding past 730 days removes the tax entirely.

Your home isn't fully exempt

Unlike the federal principal-residence exemption, there is no full exemption for your own home. Instead there is a deduction of up to $20,000 from net profit, and only if you owned the property for at least 365 consecutive days and lived in it as your primary residence. The deduction does not apply to presale assignments.

Exemptions and traps

Exemptions that still require a return

Life events: death, separation or divorce, serious illness or disability, an eligible job or school relocation, involuntary job loss, or a threat to personal safety. These exempt the sale, but you still have to file to claim them.

Automatic exemptions (no return)

Registered charities and certain other entities, property on reserve or treaty lands, and property used only for commercial purposes throughout ownership.

Watch out for

• 01Presales. The clock starts at the original contract date, not completion.
• 02Gifts. There is no blanket exemption, though holding periods can combine with the giftor's.
• 03Renovate-and-flip. Not exempt unless the property was your primary residence.

Filing and penalties

File a B.C. home flipping tax return within 90 days of a sale if you are subject to the tax, or if you qualify for an exemption that requires a return. It is a separate return from your income tax filing. Late filing can cost the greater of $500 or 5% of the unpaid tax, plus interest.

Selling within two years?

• 01Flag it early. Tell your notary and accountant before you list. Timing can change the outcome significantly.
• 02Check the calendar. Holding past 730 days removes the tax entirely.
• 03Confirm exemptions and filing. Many exemptions still require a return within 90 days. Don't assume; file to claim.

Common questions

I bought before the tax existed. Am I safe?

Not necessarily. The trigger is the sale date. A sale on or after January 1, 2025 within the 730-day window can be taxable even if you bought earlier.

It's my only home. Do I still owe?

Possibly. There is no full principal-residence exemption, only a deduction of up to $20,000, and only if you owned and lived there for at least 365 consecutive days.

Do I have to file even if I'm exempt?

For many exemptions, yes: the exemption is claimed on the return within 90 days. Only certain entities, exempt locations, and commercial-only properties need no filing.