Feds propose anti-flipping tax to cool housing prices
Profits on sale of residential property held for less than 12 months would be taxed as business income. Canadians who sell a home or rental residential property that they’ve held for less than 12 months will be considered to be flipping — and will see profits from a sale taxed as business income. The proposed anti-flipping measure, announced in the federal budget released Thursday, would apply to residential properties sold on or after Jan. 1, 2023.
“Property flipping — buying a house and selling it for much more than what was paid for it just a short time prior — can unfairly lead to higher housing prices,” the government said in the document. The proposed measure will “ensure profits from flipping residential real estate are always subject to full taxation,” while “protecting the current, vitally important, principal residence exemption for Canadians who use their houses as homes.”
Original Article Source Credits: Advisor's Edge, https://www.advisor.ca
Article Written By: Rudy Mezzetta
Original Article Posted on: April 7, 2022
Link to Original Article: https://www.advisor.ca/tax/tax-news/feds-propose-anti-flipping-tax-to-cool-housing-prices