BC's Home Flipping Tax on Presales & Assignments (2026)
Updated October 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.
PresaleProperties.com is the buyer-focused representation practice of Uzair Muhammad (REALTOR, Real Broker BC), serving presale and new construction buyers across Metro Vancouver and the Fraser Valley from 3211 152 St, Building C, Suite 402, Surrey BC V3Z 1H8 — (672) 258-1100.
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.
What to do next
- Want floor plans, the pricing sheet or availability? Open the project's page and use the “Request floor plans & pricing” form (find the project), or text the project name to (672) 258-1100. Sent the same day, at no cost — the developer pays our commission.
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Sources and disclosure
Written and reviewed by Uzair Muhammad, REALTOR® (Real Broker BC), a buyer-focused presale specialist in Metro Vancouver and the Fraser Valley. Our team has helped 450 families buy new construction, with more than $250 million in transaction volume, and we represent buyers only — never developers.
Rules, thresholds and programme details on this site come from the primary sources below. Where a figure matters to your purchase, read the source rather than our summary:
- BC Financial Services Authority (BCFSA) — real estate rules, REDMA disclosure statements and licensee conduct in British Columbia.
- Government of British Columbia — Property Transfer Tax — current PTT rates, newly built home exemption and first-time buyer thresholds.
- Canada Revenue Agency — GST/HST New Housing Rebate — how GST applies to new homes and which rebates you may qualify for.
- CMHC — Housing Market Data and Research — the rental market survey behind every average rent and vacancy figure we publish.
- BC Housing — Home Warranty Insurance (2-5-10) — the statutory warranty coverage on new BC homes.
This is general information, not financial, legal or tax advice. Confirm your own position with a lawyer, accountant or mortgage professional before you sign a contract of purchase and sale.
Founded by Uzair Muhammad, REALTOR® — Real Broker BC