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    New Home-Flipping Tax & Property Transfer Tax Exemptions in BC: What You Need to Know!

    Feb 22, 2024

    Starting in 2025, British Columbia is introducing a game-changing "home-flipping tax" aimed at cooling the housing market and reducing speculative buying. Here's the breakdown:
    🔹 𝗛𝗼𝗺𝗲-𝗙𝗹𝗶𝗽𝗽𝗶𝗻𝗴 𝗧𝗮𝘅:
    Sell within 1 year of purchase? Face a 20% tax on profits.
    The tax rate decreases to 0% by the end of the second year.
    Applies to residential properties and assignment contracts.
    Exemptions for life changes (e.g., divorce, death) and contributions to housing supply.
    🔹 𝗣𝗿𝗼𝗽𝗲𝗿𝘁𝘆 𝗧𝗿𝗮𝗻𝘀𝗳𝗲𝗿 𝗧𝗮𝘅 𝗘𝘅𝗲𝗺𝗽𝘁𝗶𝗼𝗻𝘀:
    First-time homebuyers rejoice! The exemption threshold is now raised to properties up to $835,000, potentially saving you up to $8,000.
    Newly built homes under $1.1 million also qualify for exemptions.
    Special breaks for new, qualifying rental buildings to boost rental construction.
    🔹 𝗥𝗲𝘃𝗲𝗻𝘂𝗲 & 𝗣𝘂𝗿𝗽𝗼𝘀𝗲:
    Estimated $43 million in revenue from the flipping tax, directed towards affordable housing.
    The measures aim to curb speculative buying and increase housing availability.
    🏗️ 𝗕𝗖 𝗕𝘂𝗶𝗹𝗱𝘀 𝗣𝗿𝗼𝗴𝗿𝗮𝗺:
    $198 million over three years to speed up rental construction on government land, with a focus on affordability.
    💡 This strategic move is not just about taxing; it's about encouraging a more stable, accessible housing market for everyone. Whether you're a first-time buyer or looking to invest in rental properties, these changes are designed to make a positive impact.

    Explore our sample strata report to discover how we highlight the potential and concerns of properties, aiding both real estate professionals and buyers.