The British Columbia government has revealed further details about its proposed house flipping tax, set to be introduced in spring with an effective date of January 1, 2025. The tax targets homes resold within two years of purchase, with exemptions for certain life events like death, divorce, or job relocation. Initial sales within the first year without exemptions would incur a 20% tax on profits, gradually decreasing to zero over the second year. The aim is to address housing affordability issues and ensure properties are occupied rather than flipped for profit.
Additionally, the government announced expansions to existing programs and new incentives in last week’s budget. First-time homebuyers will benefit from increased property transfer tax exemptions for homes valued up to $835,000, potentially saving up to $8,000. Moreover, there’s a new exemption for newly built homes valued up to $1.1 million and a property transfer tax exemption for purpose-built rental buildings of four or more units to stimulate rental home construction, effective from 2025 until 2030. These measures collectively aim to boost housing availability and affordability across British Columbia.
Published by Steve Huebl