# BC capital gains tax on property

> Capital gains tax on Canadian real estate is a federal tax...

**Source:** https://soldbycraig.ca/bc-capital-gains-tax-property/  
**Author:** Craig Johnston, REALTOR® (BC Licence V99960) · The MACNABS · Royal LePage Elite West  
**Site:** https://soldbycraig.ca

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Investor · Taxes

## BC capital gains tax on property — what real estate investors need to know.

Capital gains tax on Canadian real estate is a federal tax, not provincial — but BC investors need to layer it with the provincial Home Flipping Tax (effective Jan 2025) for short-hold properties. Here's the verified read.

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Quick Answer

What should you know about Bc Capital Gains Tax Property?

Capital gains tax on Canadian real estate is a federal tax, not provincial — but BC investors need to layer it with the provincial Home Flipping Tax (effective Jan 2025) for short-hold properties. Here **Craig Johnston, Top 1% Team Member — Greater Vancouver REALTORS®** and 47+ year Tri-Cities resident, can walk you through the local context. Free Strategy Call ends with a written one-page plan in 24 hours.

Verified · Investor · Taxes

## The verified facts.

Federal capital gains inclusion rate

Currently 50% of capital gains is taxable income at your marginal rate. (Note: a proposed increase to 66.7% above $250K was deferred. [VERIFY current rate with your accountant — federal capital gains rules change.])

Principal residence exemption

Your principal residence is generally exempt from capital gains tax. Only one principal residence per family at a time.

Investment / rental properties

Sale of investment property triggers capital gains. 50% of gain is added to your income at your marginal rate.

BC Home Flipping Tax (effective Jan 1, 2025)

Additional BC tax on residential properties sold within 2 years of acquisition. 20% if sold within 365 days; declining to 0% by day 730.

Reporting

Capital gains reported on Schedule 3 of your federal tax return.

Deferrals

Like-kind exchanges (US 1031) do NOT exist in Canada. Limited deferral options — talk to a tax accountant.

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