Dispositions of taxable property involving trusts
Last updated on January 26, 2026A trust may dispose of taxable property; however, not all transactions that include a trust are subject to the BC home flipping tax.
Transactions in respect of a trust may not result in a change in the beneficial interest (ownership) in the property; rather, there may only be a change in legal title. A transaction or event that results in a change in legal title, but not a change in beneficial interest in a property, is not a disposition of taxable property for the purpose of the BC home flipping tax and therefore is not subject to tax.
Persons should obtain legal advice to determine whether a transaction in respect of a trust has resulted in a change in the beneficial interest in the property. When there is a disposition of taxable property, the days of ownership will be determined based on the length of a person’s beneficial interest in the property.
Example: If a person acquires a beneficial interest in a residential property on January 1, 2024, transfers only legal title in the property to a trustee on June 1, 2025, and then disposes of the beneficial interest in the residential property on June 1, 2026, the person will have owned the beneficial interest in the residential property for 883 days (from January 1, 2024 to June 1, 2026).
The transfer of only the legal title in the property on June 1, 2025, is not a disposition of taxable property; therefore, it is not subject to the BC home flipping tax. The disposition of the taxable property on June 1, 2026, would not be subject to the BC home flipping tax because the taxable property was owned for more than 729 days.
For transactions and dispositions that involve an estate, refer to Estates for information on days of ownership and exemptions.