Greetings, 

I hope you are well. This email is a reminder regarding the new B.C. Home  Flipping Tax. 

B.C. Home Flipping Tax
- Jan 1, 2025 implementation period – Retroactive
- Housing unit, zoned Residential, or assignments - Owned for less than 730 days (2 years) or less, even if purchased before Jan 1, 2025
- BC Home Flipping Tax Return – provincial – needs to be filed and paid within 90 days of sale – filed even if no profit or exemption applies – DO NOT need to file if property owned more than 729 days or you qualify for an exemption that exempts filing or are a developer with pre-sales

- Exemptions:
- Life Circumstances – death, inheritance, serious illness or disability, relocations (with conditions), change in household membership(related person moving in, birth), Breakdown of relationship, Involuntary Employment Termination, Threat to personal safety, Bankruptcy, Housing Unit Destroyed, Expropriation, Foreclosure, Builders who construct housing units, Vacant land, Substantial Renovations, Increase of Habitable Area by at least 100%, Demo and new build, Renovation to add an additional housing unit (bsmt suite, carriage house)
- Residential & Presale contracts – flipping tax applies to net taxable income from the sale
- Primary Residence Reduction – up to $20,000 off of your taxable income if you owed a home for more than 365 consecutive days but less than 730 days and you lived in the home. 

Click here to review Bill 15 - RESIDENTIAL PROPERTY (SHORT-TERM HOLDING) PROFIT TAX

Click this link to watch a helpful video tutorial~ 

Property Tax Assessment Appeal Process~  

An appeal of your B.C. Assessment Valuation must be done by January 31, 2025. The Property Assessment Review Panel will review the appeal as the first gatekeeper. If the ruling is unsatisfactory, you can appeal the ruling to the Property Assessment Appeal Board by April 30, 2025. You must file a complaint with the Review Panel BEFORE filing an appeal to the Appeal Board.

Click here to review B.C. Assessment's Appeal Page for further details. 

As always, don't hesitate to contact me with any questions about the aforesaid indexed items or the current real estate market conditions.

Best, 

Arran 

Are you looking to buy or sell a home?
Please call me at 250-884-3980, and I can give you the expert guidance and help you need to make informed decisions and achieve your housing goals.  

First-Time Home Buyer?? 

Call me at 250-884-3980 to chat about the ZERO-DOWN FINANCING OPPORTUNITY!

Some exceptions apply 

Earn up to $1,000 if you refer someone who is looking for real estate services~ 

Click here to visit my website.

The B.C. Housing market has experienced two years of tepid sales and higher-than-average listing inventory. The past few months have seen a rebound in market activity with increasing sales. Over the upcoming year, sales are forecasted to increase due to the interplay of the following factors: lower interest rates, extended amortization periods (30 Years) for new construction and First-Time Home Buyers, and higher mortgage insurance caps (up to $1,500,000 from $1,000,000).

If you or someone you know wants to enter the real estate market, contact me at 250.884.3980.

In health, 

Arran 

Property Flipping Tax 2024~

The Property Flipping Tax is a sliding-scale tax, with a 20% tax on those properties that are resold within a one-year window and a lesser tax on any sale within a two-year time frame.  The provincial government aims to levy this tax on property flippers who purchase and sell a property within two years. The tax targets property flippers who are solely looking to make a profit. According to the Bank of Canada, approximately 3.1% of homes in Vancouver and Victoria are sold within one year. If you consider the charts above, courtesy of BCREA Economics, the participation of homes sold in B.C. throughout a one-year time frame is, on average, between 2.5-3.1%. The stats do not delineate between those in the business of flipping properties and those with valid reasons for a resell within one to two years. There are many reasons families decide to move within a two-year time frame, and the majority are for purposes that are exemptions to the flipping tax. This begs the following question: What are exemptions to this "flipping tax"? Exemptions that could apply include a death in the family, an addition to the family, employment relocations, martial breakdown, default or bankruptcy, illness or disability, destruction of the property, expropriation of the property, and more. Please visit the government of B.C.'s website: https://www2.gov.bc.ca/gov/content/taxes/income-taxes/bc-home-flipping-tax What are the effects of the flipping tax? The BCREA Market Intelligence Report notes, "In other jurisdictions where similar rules exist, such as the United States, Australia, New Zealand, and Singapore, the effect of such taxes on prices remains ambiguous; the evidence is mixed and inconclusive, and if an effect exists, it is minor." What can be said about the impact on the market on sellers who hold off listing their homes? The impacts remain to be seen. However, rational thought would indicate that if sellers are deferring their listings for a one—to two-year time frame, this would result in a reduction of listings. This would lead to a resultant price increase for the limited inventory as there would be even fewer homes, albeit not a huge amount, for purchasers to compete for. Although the government feels that taxing the small percentage of homeowners who truly "flip" their properties is a great way to gain additional tax revenue, the focus should remain on supply-side measures and programs that create the much-needed housing. Those "flippers" who are taking risks with their capital to build additional housing units for rental stock are not the ones who should bear the brunt of the government's short-sighted policies. On the other hand, those owners who are speculative with their purchases, looking to make a quick buck, and artificially inflating the market pricing should bear the tax. FIRST TIME HOME BUYER?? Call me at 250-884-3980 to chat about the ZERO-DOWN FINANCING OPPORTUNITY! *Some exceptions apply*  Looking to find out what your home is worth?? Call me, and we can discuss a market evaluation.  Click here to visit my website.

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