Home FLIPPING TAX AND REGULATION in BC, CAnada

In British Columbia, there are two distinct property flipping regulations: one at the Provincial level and the other at the Federal level.

1. BC Home Flipping Tax

The BC Home Flipping Tax applies to residential properties resold within two years of purchase. The tax calculation is based on the profit made from the sale, with the rate decreasing over the two-year period:

1. First Year: If a property is sold within the first year of purchase, the tax rate is 20% of the profit.

2. Second Year: The tax rate decreases progressively over the next 365 days, eventually reaching zero after two years.

For example, if you purchase a property and sell it within the first year, and the profit is $100,000, the tax due would be $20,000 (20% of $100,000). If the property is sold after 18 months, the tax rate would be lower, corresponding to the declining scale set by the tax regulation.

Exemptions are available for significant life events, including:

• Death

• Divorce or separation

• Serious illness or disability

• Relocation for work

• Job loss

• Changes in household membership

• Insolvency

• Safety concerns

• Destruction or expropriation of the property

Additionally, builders who add to the housing supply by constructing new homes or adding units to existing properties may also qualify for exemptions.

Presale contracts - The acquisition date for tax purposes is the date of signing the presale contract, not the completion date. If you are assigned a presale contract, the acquisition date for tax purposes is the assignment date.

Primary Residence Deduction - If you sell your Primary Residence and you owned the property for less than 2 years (730 days), you may be able to claim a deduction of up to $20,000 from your taxable income if:

• You owned the property for at least 365 consecutive days before you sold it, and

• The property includes a housing unit that you lived in as your primary residence while you owned it

For the most up-to-date and official details, please visit BC Government website on the Home Flipping Tax​. This article is for reference purposes only and was current as of the article's publication.

2. Federal Government Home Flipping Regulation

Starting January 1, 2023, profits from the sale of a flipped property (sold within 365 days of ownership) are considered business income, meaning they cannot be treated as capital gains, and the Principal Residence Exemption is not applicable.

Normally, if a property is not flipped, only 50% of the gain is taxable. For instance, a $200,000 gain would result in $100,000 being taxable. If it's your principal residence, no gain is taxable. However, business income is 100% taxable, so if a flipped property gains $200,000, the entire amount is taxable.

Exemptions are available for significant life events, including but not limited to death, divorce or separation, illness or disability, Job loss, insolvency, safety concerns etc.

For the most up-to-date and official details, please visit Canada Revenue Agency website on Residential Property Flipping Rule. This article is for reference purposes only and was current as of the article's publication.

加拿大BC省房地產翻手條例

BC 省有兩套不同的房地產翻手規例：一個屬於省政府，另一個屬於聯邦政府，他們是獨立運作的。

1. BC省房地產翻手稅

BC省房地產翻手稅適用於在購買後兩年內轉售的住宅物業。稅款的計算基於出售時的利潤，稅率在第二年來會逐步減少：

1. 第一年：如果物業在購買後第一年內出售，稅率為利潤的20%。

2. 第二年：稅率在接下來的365天內逐步降低，最終在兩年後降至零。

例如，如果你購買一個物業並在第一年內出售，利潤為100,000加元，那麼應繳稅款為20,000加元（100,000加元的20%）。如果物業在18個月後出售，稅率會相應降低。

豁免適用的重大生活事故，包括：

• 死亡

• 離婚或分居

• 嚴重疾病或殘疾

• 工作調動

• 失業

• 家庭成員變更

• 破產

• 個人安全理由

• 物業被摧毀或徵用

此外，建造新房屋的建築商也可能有資格獲得豁免。

樓花 - 如果購入的是售樓花，就房地產翻手稅而言，購買日期是預售合約的簽署日期，而不是樓宇交吉日期。如果購入的是由另外一位買家轉讓的樓花預售合約，就房地產翻手稅而言，購買日期便是簽署轉售合約的日期。

自住物業 - 如出售的是自住物業，而你擁有該物業少於2年（730天），你可能可以從你的應納稅收入中最高扣除$20,000， 條件是：

• 你至少連續擁有該自住物業365天，以及

• 在你擁有該自住物業期間， 該物業或物業的其中一個單位是你的主要住所

詳情請瀏覽 BC 省政府房地產翻手稅的官方網站，資料亦已官方網站為準。以上資料只供參考，最後更新於文章發布日。

2. 聯邦政府房地產翻手規例

自2023年1月1日起，翻手房地產（在購買365天以內轉售）銷售的利潤將被視為公司業務收入，意味著這些利潤不能作為資本增值處理，並且自住物業 的豁免不再適用。

大部份情況，如果售出的住宅不屬於翻手房地產，只有50%的利潤需要繳交資本增值稅。例如，$200,000的利潤中只有$100,000需要繳稅。如果售出是你的自住物業，則完全豁免資本增值稅。然而，公司業務收入是100%需繳稅的，所以在購買365天以內轉售的翻手房地產，其利潤全數都需要繳稅。

豁免適用的重大生活事故，包括死亡、離婚、分居、嚴重疾病或殘疾、失業、破產、個人安全理由等等…

詳情請瀏覽 加拿大稅務局房地產翻手規例的官方網站，資料亦已官方網站為準。以上資料只供參考，最後更新於文章發布日。