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NEW - BC Home Flipping Tax!

The proposed BC home flipping tax applies to income you realize from the sale of properties in British Columbia if you have owned them for less than 2 years.

The tax, which is subject to legislative approval, is separate and distinct from the federal property flipping rules and is not harmonized or administered with the federal or B.C. income tax.

Overview

The BC home flipping tax will apply to income from B.C. properties sold on or after January 1, 2025. Income from property purchased before the tax’s effective date may be subject to the new tax if sold on or after January 1, 2025 if the property is sold within 2 years, unless an exemption applies.

As previously announced in British Columbia’s Homes For People plan, the intention of the tax is to discourage short-term holding of property for profit.

How the tax will work

The BC home flipping tax will apply to income from the sale of property that was owned for less than 2 years.

The tax rate will be highest for those who owned properties for the shortest period and will decline the longer the property is owned. The tax rate will be 20 percent for income earned from properties sold within 365 days of purchase and will decline to zero between 366 and 730 days.

You may be exempt from paying tax on income earned from the sale of your property if you are eligible for an exemption.   

Who will be subject to the tax

If you sell your property on or after January 1, 2025, income earned from the sale of your property may be subject to the new tax if the property was purchased less than 2 years prior. Whether income earned from the sale of your property is subject to the tax depends on when you purchased the property.

Examples:

  • If you purchased a property on May 1, 2023 and sold the property on January 31, 2025, income you earn from the sale of the property would be taxable.

  • If you decide not to sell a property until June 1, 2025, then income you earn from the sale of the property would not be subject to the tax.

Note: The seller of the property may be a B.C. resident or a resident anywhere else in the world.

Exemptions

You may be eligible for exemptions if there are life circumstances that motivated the sale of a property within 2 years, such as:

  • Separation or divorce

  • Death

  • Disability or illness

  • Relocation for work

  • Involuntary job loss

  • Change in household membership

  • Personal safety

  • Insolvency

If you sell your primary residence within 2 years of purchase, you may also be able to exclude up to $20,000 when calculating your taxable income.

The purpose of this tax is to support housing supply, not impede it. Exemptions will be provided for those who add to the housing supply or engage in construction and real estate development.

The above information does not reflect an exhaustive list of the exemptions that will be included in this new tax. More information on these exemptions and others will be provided in the future.

Relevant properties

The tax will apply to income earned from the sale of:

  • Properties with a housing unit

  • Properties zoned for residential use

  • The right to acquire the above properties, such as the assignment of a purchase contract 

The tax will include special rules for properties, or portions of properties, that have non-residential purposes.

Income earned from the sale of properties located on reserve lands, treaty lands and lands of self-governing Indigenous Nations will not be subject to this tax.

Ministry of Finance. BC Home Flipping Tax - Province of British Columbia. 22 Feb. 2024, www2.gov.bc.ca/gov/content/taxes/income-taxes/bc-home-flipping-tax#exemptions.

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I started a YouTube channel 🎬

I will be posting and updating often, so make sure to subscribe so that you don’t miss anything! Videos to feature Kimberley real estate, Cranbrook real estate, and with more surprises to come.

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Awards Day 🏆

Reminiscing on another wonderful year in real estate which was full of new clients, selling great properties, and doing what I love.

I am proud of what I accomplished for myself and my clients this past year. Despite having to step away for a few months hiatus due to the loss of my Mother, I was still able to improve my services and have a more abundant year than last.

Thank you to all of my clients for your continued support. If you're looking for an agent that truly cares, and will work hard for you; lets connect.

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JANUARY MARKET UPDATE - Kimberley, single family homes.

These stats are for single family homes, within Kimberley.
Here is how January stacked up compared to the month prior:

👉🏼11 homes were newly listed vs. 5 new listings to market in December.
👉🏼There were 30 active listings, compared to the 26 we had in December.
👉🏼4 homes were sold during the month of January, down 1 from the 5 which were sold in December.
👉🏼The average sales price took a leap to $673,425. In December of 2023, the average sales price was $534,300
👉🏼List to sold price remained consistent at approximately 93%
👉🏼 Average days on market increased from 77 to 101.

Right now we have plenty of buyers looking for homes to buy, and no inventory to sell them. This can be a great time to list your home for sale, as there is less inventory for your home to compete against.  If you are worried about selling, only to have to find a home afterwards; well, we have creative solutions for this.  Whether you’re an experienced buyer/seller, or this is all new to you, I am happy to help walk you through the process with as much assistance as is comfortable for you.

If you'd like to discuss buying or selling, strategy for doing so, the market in general - give me a call, send me a text or an email.
Lets chat real estate 🏡☕️

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