Federal Anti-Flipping Rule
Also known as: Anti-flipping rule · Property flipping deemed business income
A federal rule (effective January 1, 2023) deeming residential property sales held less than 365 days to be 100%-included business income, with no Principal Residence Exemption available, unless a qualifying life-event applies.
The federal residential property flipping rule, effective for dispositions on or after January 1, 2023, deems sales of residential property held less than 365 consecutive days to be business income — taxed at 100% inclusion (vs. 50% for capital gains) with no Principal Residence Exemption available. The rule operates as a deeming rule, not a presumption: it applies regardless of the seller's actual intent.
Ten qualifying life-event exceptions can override the rule: death of the holder or a related individual, addition to household, breakdown of marriage or common-law partnership, threat to personal safety, serious illness or disability, work relocation (≥40 km closer), involuntary employment termination, insolvency, destruction of property, or expropriation. The federal rule operates separately from — and in addition to — the BC Home Flipping Tax.
Related terms
- BC Home Flipping Tax — A provincial tax on profit from residential property sales held under 730 days, effective January 1, 2025 — 20% if held under 365 days, phasing linearly to 0% over days 366-729.
- Capital Gains Inclusion Rate — The proportion of a capital gain included in taxable income — currently 50% federally; the 2024 proposal to raise the rate to 66.
- Presale Condo Assignment Tax Treatment — The federal + BC tax treatment of selling a presale-condo purchase contract before completion — 5% GST on the assignment fee since May 7, 2022, plus CRA's default treatment of the profit as 100%-included business income.
See also
Use any of these formats. Codex content is licensed under CC BY 4.0 — attribution required.
@misc{bronsonjob-ca_anti_flipping_rule,
author = {Job, Bronson},
title = {{Federal anti-flipping rule (deemed business income)}},
howpublished = {BC Real Estate Codex},
year = {2026},
url = {https://www.bronsonjob.com/codex#ca.anti_flipping_rule},
urldate = {2026-05-08},
note = {Fact ID: ca.anti_flipping_rule, version 1.}
}Job, B. (2026). Federal anti-flipping rule (deemed business income). *BC Real Estate Codex*. Retrieved 2026-05-08, from https://www.bronsonjob.com/codex#ca.anti_flipping_rule
Federal anti-flipping rule (deemed business income) — Bronson Job, BC Real Estate Codex (2026-05-08). https://www.bronsonjob.com/codex#ca.anti_flipping_rule
Fact id: ca.anti_flipping_rule · v1 · machine-readable: /api/v1/facts/by-id/ca.anti_flipping_rule.json
Verified sources (1)Click to expand
Every claim on this page is sourced to a primary government, regulator, or industry-association URL. We re-verify quarterly; the verification dates below show when each source was last confirmed against the live government page.
- CRAretrieved 2026-05-08Residential Property Flipping Rulehttps://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/personal-income/line-12700-capital-gains/principal-residence-other-real-estate/sale-your-principal-residence/residential-property-flipping-rule.html
ca.anti_flipping_rule · v1View in Codex →