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British Columbia's Home Flipping Tax

January

13, 2025

As of January 1, 2025, British Columbia has implemented the BC Home Flipping Tax to curb short-term property speculation and promote housing affordability.   Who Is Subject to the Tax?   This tax applies to individuals, corporations, partnerships, and trusts that sell or dispose of residential property in B.C. within 730 days (approximately two years) of acquisition. Both residents and non-residents of B.C. are subject to this tax.   Taxable Properties   The tax targets profits from the sale of:  
  • Properties with a housing unit
  • Properties zoned for residential use
  • Rights to acquire such properties, including assignments of purchase contracts for pre-construction condominiums
  Certain property locations and transactions are exempt from this tax.   Exemptions   Exemptions are available under specific circumstances, such as life events (e.g., death, divorce), builder or developer activities, and property sales between related persons. Some exemptions require filing a return, while others do not.     Tax Calculation   The tax is calculated based on net taxable income from the property sale:  
  1. Calculate Taxable Income: Sale proceeds minus purchase cost and improvement costs.
  2. Determine Net Taxable Income: Taxable income minus any applicable primary residence deduction.
  3. Apply Tax Rate:
    • 20% if owned for 365 days or less.
    • Decreasing rate if owned between 366 and 729 days, calculated as:
      • Tax rate = 20% × [1 - ((Days owned - 365) / 365)]
    • No tax if owned for 730 days or more.
  Filing and Payment   Sellers must file a BC Home Flipping Tax return within 90 days of the property sale if the property was owned for less than 730 days. The return is filed separately from annual income tax filings. Failure to file or pay on time may result in penalties and interest.   Conclusion   The BC Home Flipping Tax aims to discourage short-term property speculation and support housing affordability in British Columbia. Property owners should be aware of this tax when considering selling residential property within two years of purchase.   For detailed information and specific scenarios, refer to the official
BC government page.

Construction underway on new Langley elementary school

May

28, 2024

Construction is underway on the next Langley elementary school, scheduled to open in the fall of 2025. B.C. Education Minister Rachna Singh joined Langley School Board Chair Candy Ashdown, Langley East MLA Megan Dykeman, and Township Councillor Tim Baillie at an event to mark the start of work on what is currently called Northeast Latimer Elementary. The Kindergarten to Grade 5 school, in the 20100 block of 82 Avenue, will have spaces for 555 students when it opens, and is being built with $51.8 million from the provincial government. A park and sports field adjacent to the school, being built by Langley Township, is almost complete now. “We know we have to keep investing in quality spaces as we welcome more kids to Langley classrooms’ said Singh. Local politicians welcomed the new school, but also encouraged the province to move even faster on getting more school spaces built in Langley. The district has seen an increase in enrolment of more than 1,000 students in each of the last three years. This year, it was about 1,200 students. “The board has advocated for more capital projects for years,” said Ashdown. “You are welcome to come back any time with more announcements,” she added to Singh. Baillie, on behalf of the Township, also said he was excited for the new elementary, but encouraged even faster construction of schools. “We’ve got five more chunks of land that are just waiting for schools,” he said. Singh said in total about 1,800 seats have been added to Langley schools in recent years. Asked about future growth and other options, she noted that land has been acquired for a new secondary and middle school in Willoughby, which is by far the fastest-growing region of the Township. Singh also said the province is looking at ways to proactively acquire land for future schools. She also mentioned modular school additions. Richard Bulpitt Elementary is currently set to receive a six-classroom addition, which would replace much of the need for its six portables with a permanent structure. Langley is just one of the communities getting a modular school addition this year, as the province runs a trial on the idea across multiple districts. Singh said after the first set of modular additions are complete, the province could look at building more of them. If they do, the district will be asked to identify schools where modular additions could be built. According to district staff, the modular addition at Richard Bulpitt is actually ahead of schedule right now. It’s scheduled to open in September, and the new pre-fabricated wing of the school will come with its own washrooms, meaning an end to kids having to walk outside and to and from the main building for bathroom breaks. Article by Matthew Claxton Phone: 604-994-1054 Email: [email protected]

Should your Home be in “Move-In” Condition when you Sell?

September

16, 2022

Imagine you’re shopping for a car. You find one that’s a suitable model, a recent year, and hasn’t been driven a lot. The price is right, too. But, there’s a caveat. The paint is worn off in several places. The driver’s seat upholstery is torn and requires repair. And, the tires needed to be replaced… a long time ago. Would you still buy it? You might. However, unless you enjoy fixing up cars, you’d probably hesitate to make the purchase. After all, in addition to seeing the car itself, you’re noticing the work that needs to be done to fix it. The same holds true when selling your home. The more “move-in” ready you make the property the more likely buyers are to become interested in buying it. Like when viewing a car, you want buyers to focus on all your home’s wonderful features, not on the repairs and updates that need to be done. That being said, how important is it that your home be “move-in ready” when you sell? That depends, in large part, on the market. If it’s currently a seller’s market in the neighbourhood — lots of buyers but comparatively few properties for sale — getting your home move-in ready is less important. There is already high demand for your property. (However, getting all repairs done and staging your property effectively will still provide a significant advantage.) In a buyer’s market, where there are more homes for sale than buyers, you’re in a competitive situation. So, anything you can do to give your listing an advantage is worth the effort. That includes making it as “move-in” ready as possible.

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