Before the renovation even starts, a flip carries purchase costs, holding costs and selling costs. On top of that, two taxes now stack: the federal anti-flipping rule (since 2023) treats 100% of the profit on a home sold within 365 days as business income, and BC's Home Flipping Tax (since 2025) takes up to 20% of the profit on a home sold within a year, phasing out by the two-year mark. Some exemptions exist. Talk to your realtor and accountant before you buy.
Alright, I'm putting my feet up for this one. If you're thinking about flipping a house in BC to make some extra money, or because HGTV and your Pinterest board got you inspired, this might change the math on whether a flip will even pencil out to a profit.
I'm not here to be a Debbie Downer. I'm just here to be realistic about what we're all up against.
The costs everyone forgets
- Buying: Property Transfer Tax, legal fees and mortgage fees
- Holding: mortgage interest, property tax, insurance and utilities for every month the project runs
- Renovating: materials, labour and the overruns that almost always happen
- Selling: commission, legal fees again, and any mortgage payout penalty
Tax 1: the federal anti-flipping rule (since 2023)
If you sell a home within 365 days of buying it, the federal government treats 100% of your profit as business income, not a capital gain. There's no principal residence exemption, and if you lose money, you generally can't claim the loss.
Tax 2: BC's Home Flipping Tax (since 2025)
Then in 2025, the province added its own tax. If you sell within 365 days, the province takes 20% of your profit. The rate starts dropping after one year, and disappears completely at the two-year (730-day) mark.
Those two taxes stack on top of each other. There are some limited exemptions to both, for things like certain life events, but they're specific and they're a question for your accountant.
Before you buy the project
If you're planning a short-term flip, talk to your realtor and your accountant before you buy. Not partway through, not when it's wrapped up, and definitely not when it's already sold. And if the renovation is a big one, read about GST on substantially renovated homes too.
General information only, not tax advice. Tax rules, rates and exemptions change; get advice from a qualified accountant about your situation.