A home flipping tax introduced in the BC budget is raising the hackles of critics who say the government is out of line."The proposed BC home flipping tax applies to income you realize from the sale of properties in British Columbia if you have owned them for less than two years," the BC government explained online.The tax, which is subject to legislative approval, is separate and distinct from the federal property flipping rules and is not harmonized or administered with the federal or BC income tax.The BC home flipping tax will apply to income from BC properties sold on or after January 1, 2025. Income from property purchased before the tax’s effective date may be subject to the new tax if sold on or after January 1, 2025 if the property is sold within 2 years.The tax rate will be 20% for income earned from properties sold within 365 days of purchase and will decline to zero between 366 and 730 days.Exemptions apply to sellers if the sale was motivated by special circumstances, such asSeparation or divorceDeathDisability or illnessRelocation for workInvoluntary job lossChange in household membershipPersonal safetyInsolvencyBritish Columbians who sell their primary residence within two years of purchase may also be able to exclude up to $20,000 when calculating their taxable income.The government insisted online, "The purpose of this tax is to support housing supply, not impede it. Exemptions will be provided for those who add to the housing supply or engage in construction and real estate development."Former Newfoundland premier Brian Peckford, now retired on Vancouver Island, condemned the housing tax in a blog post entitled BC Nanny State in Full Bloom--BC Budget."A house flipping tax — ever hear of that before?" asked Peckford. "How is that for freedom?"The former premier bemoaned the $26 billion of new deficits expected over the next four budgets including $7.9 billion for the current year."Spending on steroids!! How is that for good financial management !!! Let our children and grandchildren and great grandchildren be saddled with paying it back. We are too spineless to be responsible and live within our means."Peckford mocked the term "affordable debt" used by finance minister Katrine Conroy, as well as her apparent statement, "Our government has your back." "No, no it has forced people unborn to pay for irresponsible behaviour, and to reduce freedom on those now living," Peckford said."And our young people are to use these leaders as role models?" Peckford is not the only one to criticize house taxes. On February 18, Canadian Taxpayers Federation BC Director Carson Binda wrote federation supporters across Canada to oppose house taxes and announce a petition to the prime minister against them."Your home equity is none of the government’s business and you can tell Ottawa to back off when the time comes to sell your home," Binda wrote."Back in 2016, the Trudeau government made it mandatory to report the sale of your home to the Canada Revenue Agency. "Why does the CRA want to know about home sales at tax time? Do you think they’re just curious?"Binda warned that "actions speak louder than words" and that home taxes are a bad idea."A home equity tax would tax the proceeds from the sale of your primary residence. Right now, those sales are exempt from federal taxes. Removing that exemption would make buying and selling homes more expensive," Binda warned."Prime Minister Justin Trudeau says he has no plans to hammer you with a home equity tax, so why is he making you report the sale of your home to the CRA?"
A home flipping tax introduced in the BC budget is raising the hackles of critics who say the government is out of line."The proposed BC home flipping tax applies to income you realize from the sale of properties in British Columbia if you have owned them for less than two years," the BC government explained online.The tax, which is subject to legislative approval, is separate and distinct from the federal property flipping rules and is not harmonized or administered with the federal or BC income tax.The BC home flipping tax will apply to income from BC properties sold on or after January 1, 2025. Income from property purchased before the tax’s effective date may be subject to the new tax if sold on or after January 1, 2025 if the property is sold within 2 years.The tax rate will be 20% for income earned from properties sold within 365 days of purchase and will decline to zero between 366 and 730 days.Exemptions apply to sellers if the sale was motivated by special circumstances, such asSeparation or divorceDeathDisability or illnessRelocation for workInvoluntary job lossChange in household membershipPersonal safetyInsolvencyBritish Columbians who sell their primary residence within two years of purchase may also be able to exclude up to $20,000 when calculating their taxable income.The government insisted online, "The purpose of this tax is to support housing supply, not impede it. Exemptions will be provided for those who add to the housing supply or engage in construction and real estate development."Former Newfoundland premier Brian Peckford, now retired on Vancouver Island, condemned the housing tax in a blog post entitled BC Nanny State in Full Bloom--BC Budget."A house flipping tax — ever hear of that before?" asked Peckford. "How is that for freedom?"The former premier bemoaned the $26 billion of new deficits expected over the next four budgets including $7.9 billion for the current year."Spending on steroids!! How is that for good financial management !!! Let our children and grandchildren and great grandchildren be saddled with paying it back. We are too spineless to be responsible and live within our means."Peckford mocked the term "affordable debt" used by finance minister Katrine Conroy, as well as her apparent statement, "Our government has your back." "No, no it has forced people unborn to pay for irresponsible behaviour, and to reduce freedom on those now living," Peckford said."And our young people are to use these leaders as role models?" Peckford is not the only one to criticize house taxes. On February 18, Canadian Taxpayers Federation BC Director Carson Binda wrote federation supporters across Canada to oppose house taxes and announce a petition to the prime minister against them."Your home equity is none of the government’s business and you can tell Ottawa to back off when the time comes to sell your home," Binda wrote."Back in 2016, the Trudeau government made it mandatory to report the sale of your home to the Canada Revenue Agency. "Why does the CRA want to know about home sales at tax time? Do you think they’re just curious?"Binda warned that "actions speak louder than words" and that home taxes are a bad idea."A home equity tax would tax the proceeds from the sale of your primary residence. Right now, those sales are exempt from federal taxes. Removing that exemption would make buying and selling homes more expensive," Binda warned."Prime Minister Justin Trudeau says he has no plans to hammer you with a home equity tax, so why is he making you report the sale of your home to the CRA?"
