Since January 1, 2025, British Columbia taxes the profit on homes sold within two years of buying them. The BC home flipping tax is separate from income tax, has its own return, and applies to presale assignments as well as finished homes. Here’s who pays it, how much, the exemptions, and how it sits alongside the federal flipping rule, from the Province’s own guidance.
What it applies to
The tax applies to the profit when you sell, or otherwise dispose of, a residential property in BC that you’ve owned for less than 730 days. That includes:
- properties with a housing unit, such as a house, condo or townhome;
- land zoned for residential use; and
- rights to buy a property, such as assigning a presale contract.
It applies to individuals, corporations, partnerships and trusts. A property bought before 2025 is still caught if it’s sold on or after January 1, 2025 and was owned for less than 730 days.
How much
The rate is 20% of the net taxable income (the profit) if you sell within 365 days. After that it falls steadily to zero at 730 days:
rate = 20% × [1 − (days owned − 365) ÷ 365]
For example, sell at 547 days, about a year and a half, and the rate is about 10%. At 730 days, the tax no longer applies.
The $20,000 deduction for your home
If the property was your primary residence, you may deduct up to $20,000 from the taxable income. You must have owned it for at least 365 consecutive days, and a housing unit on it must have been your primary residence while you owned it. The deduction isn’t available on the assignment of a presale contract.
Exemptions
Some exemptions apply only if you file a return and claim them:
- Life circumstances. These include a death, or selling in anticipation of one; serious illness or disability; relocating for work or full-time post-secondary study (for your home, the new location must be at least 40 km closer to the work or school than the old home); a change in household, such as a related person moving in or having a child; the breakdown of a marriage or common-law relationship, after living apart for at least 90 days; involuntary job loss (not for the self-employed); a threat to personal safety; insolvency; and destruction of the home by fire, flood, earthquake or landslide.
- Building and renovating. Builders, developers, and certain building or renovating activity.
- Sales between related people, in some circumstances.
Others apply without filing, such as property on certain First Nations lands, sales by registered charities and other exempt entities, and property used only for commercial purposes for the whole time it was owned. Gifts aren’t automatically exempt.
Filing
If you sell a property you’ve owned for less than 730 days, you must file a BC home flipping tax return within 90 days of the sale, even when you’re claiming an exemption that requires filing. The return is separate from your annual income tax return, and late or missing returns can bring penalties.
The federal flipping rule too
Federally, since January 1, 2023, the profit on a home or a right to buy one owned for less than 365 consecutive days is generally treated as business income, fully taxable, and the principal residence exemption doesn’t apply, unless a life-event exception such as a death, serious illness, separation or job relocation applies. The BC tax isn’t coordinated with the federal rule, so a quick resale can be caught by both.
Presales and assignments
Assigning a presale contract before completion is a disposition of a right to buy, so the BC tax can apply to the assignment profit, without the $20,000 deduction. Developers signing the original presale agreements generally don’t need to file. If you’re buying a presale you might assign, work through the timing with your accountant before you sign.
Questions people ask
I sold at a loss. Do I still file?
Check with your accountant. The filing duty depends on whether you’re subject to the tax or claiming an exemption that requires a return, so confirm on the Province’s site before assuming you don’t need to.
Which date starts and stops the clock?
The tax counts the days between when you acquired the property and when you disposed of it. Have your accountant confirm the dates that apply to your purchase and sale, especially for a presale.
Does it apply if I move for a new job?
It may not, if the move qualifies as a life-circumstance exemption. You’ll still need to file to claim it.
General information, current as of publication. It’s not tax advice. The rules have more conditions than this summary covers; confirm your situation with your accountant and on the Province’s site.