B.C.’s new home-flipping tax will go into effect on Jan. 1, 2025.
This means that anyone who sells a home within a year of purchasing it will have to pay a 20 per cent tax rate on the profit.
That percentage drops to 10 per cent after 18 months and then down to zero after the person has owned the property for more than two years.
The tax is meant to crack down on house-flipping but some experts argue that it will impact people who are not trying to flip properties.
“Folks who, like you said, just have life happening, they have no intention of creating profit, they lose their job, they have a child, they separate … they are impacted by having to remit, they’re having to hire accountants and lawyers to navigate the complexity of a new tax,” Trevor Koot, CEO of the BC Real Estate Association, said.
“It becomes a burden.”