'We're sending a clear message': B.C. prepares for home flipping tax amid criticism
CTV
Next week, when the calendars turn to 2025, the provincial government will begin imposing a 20-per-cent tax on all profits if a home is sold within a year of purchasing it.
The days of turning a home into a quick profit in B.C. could be numbered.
Next week, when the calendars turn to 2025, the provincial government will begin imposing a 20-per-cent tax on all profits if a home is sold within a year of purchasing it. That number will fall to 10 per cent at 18 months and nothing after two years.
On Friday, B.C. Minister of Housing Ravi Kahlon told CTV News that the flipping tax is one of many actions the government is taking to help people find homes they can afford. The money raised from the tax will also be used to support housing programs and build new homes.
“We’re sending a clear message that speculation doesn’t pay,” said Kahlon.
The province has faced criticism over the flipping tax since it announced the legislation earlier in the year.
EXP Realty realtor Ryan Dash believes the tax will have an adverse effect on the market. He worries it will further restrict home sales because homeowners will wait two years to avoid taxation.
“The actual policy itself seems to penalize the general public. It forces them now to either buy new or buy something that's old that cannot be renovated,” said Dash.
