BC's Home Flipping Tax on Presales & Assignments (2026)
As of 2026, BC's Home Flipping Tax applies a 20% provincial tax on the profit from selling residential property or a presale assignment within 365 days of buying it, then slides linearly to 0 by day 730. It applies to assignment profit as well as completed-home sales. Life-event exemptions exist (job relocation, divorce, death, serious illness). GST and CRA business-income treatment can also apply on top — confirm your specifics with a CPA before you assign.
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What is BC's Home Flipping Tax?
A 2024-onwards provincial tax on gains from residential real estate held under 730 days. 20% of profit in year one, sliding linearly to 0% at day 730. Separate from federal capital gains, and it applies to assignments as well as completed-home sales.
How does it apply to a presale assignment?
The profit (assignment amount minus original price and eligible costs) is a taxable disposition. The 730-day clock generally runs from the original contract date to assignment closing. A $50,000 profit at day 300 = approximately $10,000 BC flipping tax before GST and CRA income.
What are the exemptions?
Life-event exemptions include job relocation over a distance threshold, separation or divorce, death, serious illness, threats to safety, insolvency, and specific new-construction circumstances. Documentation is required — self-declaring without support risks assessment.
How does GST apply to an assignment?
As of 2022, CRA applies 5% GST on the assignment amount of new residential presales — even for non-builder assignors. Typically negotiated onto the buyer but it's a deal point. Separate from and on top of the BC flipping tax.
Can CRA also treat my profit as business income?
Yes. CRA generally treats assignment profit as fully taxable business income (100%), not capital gains (50%), unless you can demonstrate genuine occupancy intent. Federal + provincial income tax on top of flipping tax and GST — CPA review is essential.
How should I plan around the flipping tax?
Three levers: hold to 730 days to hit 0%, document genuine occupancy intent from day one if you plan to complete, or price the tax into your assignment expectations before you sign.
Frequently Asked Questions
Does the BC flipping tax apply to presale assignments?
Yes. As of 2026, BC applies the tax to assignment dispositions within 730 days of the original contract date.
How is the 730-day period measured?
Generally from the original purchase contract date to the disposition (assignment closing) date. Confirm with your accountant.
Can I avoid the tax by living in the home first?
Life-event exemptions exist but briefly moving in is not a blanket exemption. Documentation and genuine intent matter.
Is the flipping tax the same as CRA's anti-flipping rule?
No — CRA's rule is federal (business income on under-365-day gains). BC's flipping tax is a separate provincial tax.
Do exemptions apply to job relocation?
Yes, above a set commute-distance threshold. Confirm the current threshold and documentation with your CPA.