๐ฃ๐น๐ฎ๐ป๐ป๐ถ๐ป๐ด ๐๐ผ ๐๐ฒ๐น๐น ๐ฎ ๐ต๐ผ๐บ๐ฒ ๐ถ๐ป ๐๐? ๐ง๐ต๐ถ๐ ๐ผ๐ป๐ฒ ๐ถ๐ ๐ณ๐ผ๐ฟ ๐๐ผ๐ ๐
๐๐ง ๐บ๐ฐ๐ถ ๐ข๐ณ๐ฆ ๐ต๐ฉ๐ช๐ฏ๐ฌ๐ช๐ฏ๐จ ๐ข๐ฃ๐ฐ๐ถ๐ต ๐ด๐ฆ๐ญ๐ญ๐ช๐ฏ๐จ ๐ข ๐ณ๐ฆ๐ค๐ฆ๐ฏ๐ต ๐ณ๐ฆ๐ข๐ญ ๐ฆ๐ด๐ต๐ข๐ต๐ฆ ๐ฑ๐ถ๐ณ๐ค๐ฉ๐ข๐ด๐ฆ, ๐ด๐ต๐ข๐บ ๐ช๐ฏ๐ง๐ฐ๐ณ๐ฎ๐ฆ๐ฅ. The proposed BC home flipping tax applies to income from the sale of a property, including presale contracts - in British Columbia if the property was owned for less than 730 days. Property purchased before the taxโs effective date may be subject to the tax if sold on or after January 1, 2025 and owned for less than 730 days unless an exemption applies.
This new home flipping tax comes into effect ๐๐๐ง๐ฎ๐๐ซ๐ฒ ๐, ๐๐๐๐ ๐๐ง๐ ๐๐ฉ๐ฉ๐ฅ๐ข๐๐ฌ ๐๐จ๐ซ ๐ญ๐ฐ๐จ ๐ฒ๐๐๐ซ๐ฌ ๐๐๐ญ๐๐ซ ๐ ๐ฉ๐ซ๐จ๐ฉ๐๐ซ๐ญ๐ฒ ๐ข๐ฌ ๐ฉ๐ฎ๐ซ๐๐ก๐๐ฌ๐๐.
๐๐๐ซ๐ ๐๐ซ๐ ๐ฌ๐จ๐ฆ๐ ๐๐ฑ๐๐ฆ๐ฉ๐ฅ๐ ๐ฌ๐๐๐ง๐๐ซ๐ข๐จ๐ฌ (๐ข๐ง ๐๐๐๐ก ๐ฌ๐๐๐ง๐๐ซ๐ข๐จ, ๐ญ๐ก๐ ๐๐ฅ๐ข๐๐ง๐ญ ๐๐ฎ๐ฒ๐ฌ ๐ ๐ก๐จ๐ฆ๐ ๐ข๐ง ๐๐๐ซ๐๐ก ๐๐๐๐):
1๏ธโฃ The client sells the home on December 24, 2024. No tax would be payable because the tax is not in force yet.
2๏ธโฃ The client sells the home on February 3, 2025. Tax is payable in this scenario, depending on the amount of profit and the timing. The faster the house is flipped, the higher the tax is.
3๏ธโฃ The client sells the home in April 2026. No tax is payable because this is outside the two-year window.
4๏ธโฃ The home purchased in March 2024 was a pre-sale. The client is set to move in December 2026. If the client assigns their contract to another buyer before March 2026, there will be tax payable as the contract was entered into in March 2024.
Questions about these changes and how the information directly affects you? Reach out, I am here to help,
๐๐๐ฃ๐๐จ๐๐ฎ ๐๐๐ก๐ก๐ค๐จ๐๐ก๐ข๐
RE/MAX Kelowna
778.214.4600
