DeedWorthGuide · Quebec

Property Flipping Tax in Canada: The Anti-Flip Rule and BC's Tax

Last verified: July 2026

In brief — Reselling a residential property quickly is heavily taxed. Federally (across Canada), the anti-flipping rule recharacterizes the profit on a resale under 365 days as business income taxed at 100% — no 50% capital gain, no principal residence exemption. In British Columbia, an additional tax (BC Home Flipping Tax) applies on resales under 730 days, up to 20% of the profit.

Flipping — buy, resell fast for a profit — is tempting, but the tax code punishes short holds. And since 2025, BC piles on. Here are the two regimes to know before planning a quick resale.

The federal anti-flip rule: under 365 days

Since January 1, 2023, a federal rule applies across Canada: if you resell a residential property held less than 12 months, the profit is not a capital gain (taxed at 50%). It is recharacterized as business income, taxed at 100%, with no principal residence exemption.

Concretely, on a $60,000 profit, a capital gain would have added $30,000 to your income; under the anti-flip rule, it is $60,000 — double the tax.

Exceptions exist for life events unrelated to a speculative intent: death, disability or serious illness, the birth of a child, separation or relationship breakdown, an eligible work relocation, insolvency, an involuntary disposition, among others. Outside these cases, holding under a year is penalized.

The BC Home Flipping Tax: under 730 days

Since January 1, 2025, British Columbia applies a separate tax on the quick resale of a residential property — it adds to income tax, it does not replace it:

Holding period	Rate on the profit
≤ 365 days	20%
366 to 729 days	degressive from 20% toward 0%
≥ 730 days	no tax

The rate declines linearly between 1 and 2 years, then disappears at 2 years of holding. Exemptions exist (life events, real estate development), and a principal residence relief of up to $20,000 may apply for an occupant.

Federal vs BC: two regimes that stack

These are two independent measures:

The federal anti-flip changes the nature of the income (capital gain → business income) on holds under 365 days, across Canada.
The BC Home Flipping Tax is an additional tax specific to BC, on holds under 730 days.

In BC, a resale under 365 days can therefore face both at once: the profit taxed at 100% federally and the provincial 20% tax.

What it means for your strategy

Short holds are almost never tax-advantageous. A project that looks profitable at the resale price can turn into a loss once the flipping tax applies.
In BRRRR, you keep the property. Because you refinance and rent rather than resell, the anti-flip rule does not apply — a key advantage of the strategy (see the BRRRR guide).
If you hold longer, the profit becomes a capital gain at 50% (federal), and BC's tax disappears at two years.

Build it into your analysis

DeedWorth builds the anti-flip rule and the BC Home Flipping Tax into the exit tax, so the after-tax return of a quick-resale scenario reflects the real bill. Analyze a property with DeedWorth →

FAQ

What is the 365-day anti-flipping rule? A federal rule (since January 1, 2023): reselling a residential property held under 12 months taxes the profit as business income at 100%, with no capital gains treatment and no principal residence exemption.

What is the BC Home Flipping Tax? A British Columbia tax (since January 1, 2025) on the resale of a residential property held under 730 days: 20% of the profit up to 365 days, degressive after, nil from 730 days. It adds to income tax.

Can you face both taxes at once? Yes, in BC: a resale under 365 days can be taxed at 100% federally and also face the provincial 20% tax.

Is BRRRR caught by the anti-flip rule? No: in BRRRR, you keep and rent the property rather than resell it, so the anti-flip rule does not apply.

For information only, not personalized tax advice. Rules and exemptions change; confirm your situation with an accountant. Last verified: July 2026.