Exemptions from the BC home flipping tax

The BC home flipping tax applies to income from the sale of a property, including presale contracts, in British Columbia if the property was owned for less than 730 days, unless an exemption applies.

The tax is imposed under the Residential Property (Short-Term Holding) Profit Tax Act, which takes effect starting January 1, 2025.

If you qualify for any of the following exemptions, you will not have to pay the tax. Depending on your exemption, you are either exempt only after filing a return, or can be exempt without filing a return.

Exemptions that require filing a return

The following exemptions are only available if you file a BC home flipping tax return:

• Life circumstance exemptions
• Exemptions for builders, developers, and building or renovating related activity
• Exemptions for property sales between related persons

Exemptions without filing a return

Some groups are always exempt from the BC home flipping tax. If you fall under any of the following categories, you do not need to file a return to be exempt from the tax when you sell your property:

• Your property is in an exempt location
• You are an exempt entity
• You acquired the property as a beneficiary of a real estate investment trust
• You used your property exclusively for a commercial purpose

Exempt property locations

If your residential property is in any of the following locations, you do not need to file a return or pay the BC home flipping tax:

• A reserve as defined in section 2(1) of the Indian Act (Canada)
• Nisga’a Lands
• Nisga’a Fee Simple Lands as defined in the Definitions Chapter of the Nisga’a Final Agreement
• shíshálh lands as defined in section 2(1) of the shíshálh Nation Self-Government Act (Canada)
• Treaty lands of a Treaty First Nation
• Maa-nulth First Nation Lands as defined in the Definitions Chapter of the Maa-nulth First Nations Final Agreement
• Tla’amin Lands as defined in the Definitions Chapter of the Tla’amin Final Agreement
• Tsawwassen lands as defined in the Definitions Chapter of the Tsawwassen First Nation Final Agreement

Exempt entities

If you qualify as one of the following entities on the date that the property is sold, you do not need to file a return or pay the BC home flipping tax:

• A registered charity as defined in section 248(1) of the Income Tax Act (Canada)
• An association as defined in section 1(1) of the Cooperative Association Act
• The government
• An agent of the government 
• An Indigenous Nation
• An organization included in the government reporting entity as defined in section 1(1) of the Budget Transparency and Accountability Act
• A government body as defined in section 1 of the Financial Administration Act
• A local public body as defined in Schedule 1 of the Freedom of Information and Protection of Privacy Act
• A public body referred to in Schedule 2 of the Freedom of Information and Protection of Privacy Act
• A corporation owned by a municipality
• A corporation owned by a regional district
• A corporation owned by an Indigenous Nation
• Certain housing corporations which are exempt from tax under section 149(1)(i) of the Income Tax Act (Canada)
• A non-profit organization described in section 149(1)(l) of the Income Tax Act (Canada)
• A limited-dividend housing company described in section 149(1)(n) of the Income Tax Act (Canada)

Acquired property as a beneficiary of a real estate investment trust

You do not need to file a return or pay the BC home flipping tax if you acquired the property you are selling as a beneficiary of a real estate investment trust, as defined in section 122.1(1) of the Income Tax Act (Canada).

Property was for exclusive commercial use

You do not need to file a return or pay the BC home flipping tax if you used the residential property exclusively for a commercial purpose for the entire time that you held that property.

• Example: Elizabeth owns a residential property but has used it exclusively for her insurance business for the entire time she has owned the property. Elizabeth sells the residential property after 20 months and is exempt from the BC home flipping tax.