Taxation of estates
Last updated on January 26, 2026On this page
- Distribution of estate property to a beneficiary
- Disposition of distributed property by a beneficiary
- Disposition of estate taxable property
- Disposition of taxable property purchased from an estate
Distribution of estate property to a beneficiary
When the administrator of an estate distributes the estate property to one or more beneficiaries, the property has not been disposed of for the purposes of the BC home flipping tax because no consideration has been given for the property.
A property that has not been disposed of is not a taxable property and is not subject to the BC home flipping tax.
Disposition of distributed property by a beneficiary
If you’re a beneficiary who has received a residential property as a direct consequence of the distribution of estate property of the deceased, including property that is a pre-sale contract, when you then dispose of that taxable property and you’ve held the taxable property for less than 730 days, you will be subject to the BC home flipping tax and will be eligible for the death of an individual exemption. You will need to file a BC home flipping tax return to claim the exemption.
Exemption available for beneficiary that’s not related to the deceased
If a beneficiary who has received a residential property as a direct consequence of the distribution of estate property of the deceased, including property that is a pre-sale contract, isn’t related to the deceased and then disposes of the taxable property to an unrelated person, the beneficiary will not be able to include the days of ownership of the deceased. If the beneficiary held the taxable property for more than 729 days, the disposition of the taxable property is not subject to the BC home flipping tax. If the beneficiary held the taxable property for less than 730 days, the disposition of the taxable property will be subject to the BC home flipping tax and the beneficiary will be eligible for the death of an individual exemption. The beneficiary will need to file a BC home flipping tax return to claim the exemption.
Exemption available for beneficiary that’s related to the deceased
If a beneficiary who has received a residential property as a direct consequence of the distribution of estate property of the deceased, including property that is a pre-sale contract, is related to the deceased and then disposes of taxable property to an unrelated person, the beneficiary will be able to include the days of ownership of the deceased, including the days the taxable property is administered by the estate. Additional information on the days of ownership for taxable property acquired from a related person can be found here.
If the number of days the taxable property was held is more than 729 days, the disposition of the taxable property is not subject to the BC home flipping tax. If the number of days the taxable property was held is less than 730 days, the disposition of the taxable property will be subject to the BC home flipping tax and the beneficiary will be eligible for the death of an individual exemption. The beneficiary will need to file a BC home flipping tax return to claim the exemption.
Distribution of estate taxable property
When the administrator of an estate disposes of a taxable property, the administrator of the estate is considered to be acting for the deceased. Therefore, the days the taxable property is held are the days the taxable property is held by the deceased and the days the administrator of the estate is administering the taxable property.
If the taxable property is held for more than 729 days, the disposition of the taxable property will not be subject to the BC home flipping tax.
If you’re an administrator of an estate and have disposed of a taxable property that is held for less than 730 days, please contact us by email or phone using the contact information below for additional information.
Disposition of taxable property purchased from an estate
Purchaser who is not related to the deceased
If you’ve purchased property from an estate and you were not related to the deceased, your cost to acquire the taxable property, proceeds from the disposition of the taxable property, and the number of days that you owned the taxable property will be the same as for any other acquisition and disposition of taxable property. Information on how to calculate your tax and days of ownership can be found here.
You may not claim the death of an individual exemption.
If you’ve disposed of the taxable property to a related person, you qualify for the exemption for taxable property dispositions between related persons. You must file the BC home flipping tax return to claim the exemption.
Purchaser who is related to the deceased
If you’ve purchased property from an estate, you were related to the deceased, and you then dispose of the taxable property to an unrelated person, you will be able to include the days of ownership of the deceased, including the days the property is administered by the estate. Additional information on the days of ownership for taxable property acquired from a related person can be found here.
If you’ve held the taxable property for less than 730 days, the disposition of the taxable property is subject to the BC home flipping tax. If you’ve disposed of the taxable property to a related person, you qualify for the exemption for taxable property dispositions between related persons. You must file the BC home flipping tax return to claim the exemption.