Friday, February 23, 2024

This article contains summary information only - more details are coming soon

Your association's government relations team is currently reviewing the wording of the new measures outlined in BC Budget 2024, including the new Property Transfer Tax exemptions and BC Home FLipping Tax.

We'll provide more information and analysis on the impact of these measures in the coming days.

The provincial government announced new housing related measures, including the BC Home Flipping Tax and new property transfer tax exemptions, in the Budget 2024 on February 22, 2024.

Greater Vancouver REALTORS® (GVR) is currently reviewing BC Budget 2024, including the language around the flipping tax and Property Transfer Tax (PTT) exemptions.

In the meantime, here’s a brief overview of these two changes.

BC Home Flipping Tax

The proposed BC Home Flipping Tax will apply to any home or property zoned for residential use sold within two years of purchase after January 1, 2025.

The tax rate will vary depending on how long the home or property has been owned. If sold within the first 365 days, the seller will pay a 20 per cent tax rate on the income they earn from the sale. After that, the rate will begin to decline until it reaches zero per cent at 730 days.

The province has also announced that exemptions will apply for

  • Separation or divorce
  • Death
  • Disability or illness
  • Relocation for work
  • Involuntary job loss
  • Change in household membership
  • Personal safety
  • Insolvency

More exemptions will be announced at a future date.

PTT exemptions

BC Budget 2024 also included new PTT exemptions, including an increase to the First Time Homebuyers Program threshold. First-time buyers will now be exempt from the PTT up to $500,000 on the purchase of a home worth up to $835,000.

Purpose-built rental properties with four or more units will now be exempt from the PTT until 2030.

We’ll provide more detailed information and analysis in the coming days. Keep an eye on your email.