According to the Government of Canada website and I quote “For 2023 and subsequent taxation years, Budget 2022 introduced a new deeming rule for residential real estate (including rental property). The new deeming rule is to ensure that profits from the disposition of flipped property are taxed as business income.” Full details here
Canada Revenue Agency (CRA) defines property flipping as property flipping involves purchasing residential property and reselling the property in a short period of time to realize a profit. This also includes reselling the rights to purchase a property before its official sale.
Visit the Government of Canada website here to learn all the details and consult with your professional tax advisor to learn more and consult with CRA to get replies to your question prior to selling your property so can determine if the sale of your property will be impacted by the Federal Property Flipping tax.
Make sure you also get advise about the BC Property Flipping tax that is NOT the same as the Federal Property Flipping tax.
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Sincerely,
David Hennessey
REALTOR®
eXp Realty
604 626 8903