Federal Anti-Flipping Rule
Also known as: Anti-flipping rule · Property flipping deemed business income
A federal rule that treats the profit on a home sold within 365 days as fully taxable business income rather than a capital gain. The principal residence exemption does not apply. Ten named life events are carved out, among them a death, a marriage breakdown, a job move of at least 40 kilometres and insolvency. In force since January 1, 2023.
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 BC tax on the profit when you sell a home you have owned less than 730 days.
- Capital Gains Inclusion Rate — Half of a capital gain is included in taxable income federally, and that has not changed.
- Presale Condo Assignment Tax Treatment — What you owe when you sell a presale contract before the building completes.
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 = {2023},
url = {https://www.bronsonjob.com/codex#ca.anti_flipping_rule},
urldate = {2026-08-02},
note = {Fact ID: ca.anti_flipping_rule, version 1.}
}Job, B. (2023). Federal anti-flipping rule (deemed business income). *BC Real Estate Codex*. Retrieved 2026-08-02, from https://www.bronsonjob.com/codex#ca.anti_flipping_rule
Federal anti-flipping rule (deemed business income) — Bronson Job PREC, BC Real Estate Codex (2026-08-02). 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)· re-verified 2026-08-02Click 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 2026-08-02Principal residence and other real estate (flipped property rules)https://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.html
ca.anti_flipping_rule · v1View in Codex →License: This definition is licensed under CC BY 4.0. Cite as: "Federal Anti-Flipping Rule", BC Real Estate Glossary by Bronson Job, https://www.bronsonjob.com/glossary/federal-anti-flipping-rule.
