What is the BC Home Flipping Tax?

Direct answer

The BC Home Flipping Tax (the Residential Property (Short-Term Holding) Profit Tax Act) is a provincial tax on profit from selling residential real estate held a short time. It took effect January 1, 2025 and applies to dispositions on or after that date — including properties bought BEFORE January 1, 2025 if they are sold within 730 days of acquisition. The rate is 20% of profit if you held the property less than 365 days, then phases linearly to 0% from days 366 to 729 via the formula 20% × ((730 − days held) ÷ 365). After 730 days no flipping tax applies. Owner-occupiers may deduct up to $20,000 against the taxable amount if the property was their principal residence for at least 365 of the days they owned it. The tax is separate from — and stacks on top of — federal capital gains and the federal anti-flipping rule. Filing is due within 90 days of disposition on a dedicated provincial return (NOT the T1). Ten life-event exemptions match the federal anti-flipping list: death, addition to household, marriage breakdown, threat to safety, serious illness, work relocation ≥40 km closer, involuntary termination, insolvency, property destruction, expropriation.