On February 22, 2024, British Columbia’s 2024 Funds was launched. Included within the Funds are the next measures regarding actual property taxes:
[1] New House Flipping Tax: The house flipping tax will apply to revenue from the sale of sure residential property bought on or after January 1, 2025 that was owned for lower than 2 years. The tax fee might be 20% for properties bought inside three hundred and sixty five days of acquisition, with a declining fee for properties bought inside 366 – 730 days of acquisition.
Draft laws for this tax shouldn’t be but accessible, however it’s anticipated to:
- apply to the sale of blended use properties, however solely the residential portion of such properties;
- apply to revenue from the task of residential pre-sale contracts;
- include exemptions for transactions that add to the housing provide (e.g. gross sales of vacant improvement land will seemingly be exempt), and;
- include exemptions from the tax for “life circumstances” e.g. separation or divorce, dying, incapacity or sickness, insolvency, and many others. Word that these exemptions typically match the exemptions beneath the Federal Residential Property Flipping Guidelines, however BC’s dwelling flipping tax might be a definite tax.
[2] Property Switch Tax Exemption For Function Constructed Leases: Newly constructed purpose-built rental buildings acquired between January 1, 2025 and December 31, 2030 might be exempt from property switch tax. With a view to qualify for this exemption, the constructing should be newly constructed, non-stratified, include at the least 4 housing models, and be supplied for lease on a month-to-month foundation (or longer) for at the least 10 years following the acquisition. If the constructing is bought in the course of the 10 years following preliminary acquisition, the proprietor might be required to repay a proportionate share of the exempted tax (calculated primarily based on the size of time the proprietor has owned the constructing). There will even be varied exemptions to the requirement to repeatedly provide the models within the constructing throughout this 10 yr interval for: 1) vital renovations; 2) drive majeure; 3) as much as 2 models within the constructing being occupied by the proprietor or a caretaker.