The provincial government has unveiled new housing-related measures as part of the Budget 2024, which includes the introduction of the BC Home Flipping Tax and adjustments to property transfer tax exemptions. Here's a breakdown of these changes:
BC Home Flipping Tax:
The proposed BC Home Flipping Tax will be applicable to any residential property sold within two years of its purchase after January 1, 2025. The tax rate will vary based on the duration of ownership. If the property is sold within the first year, a 20 percent tax rate will be applied on the income generated from the sale.
This rate will gradually decrease over time, reaching zero percent after 730 days. Certain exemptions have also been announced, including situations involving separation or divorce, death, disability or illness, relocation for work, involuntary job loss, change in household membership, personal safety, and insolvency. Additional exemptions may be revealed in the future.
PTT Exemptions:
The BC Budget 2024 has expanded the scope of property transfer tax exemptions, particularly for first-time homebuyers.
The threshold for exemption under the First Time Homebuyers Program has been raised, allowing first-time buyers to be exempt from the property transfer tax up to $500,000 for homes valued at up to $835,000. Furthermore, purpose-built rental properties comprising four or more units will be exempt from the property transfer tax until 2030.
