SELLING A HOME IN BC: TAXES, COSTS & RULES

Most sellers focus on the sale price. The smarter question is what you'll keep — and in BC, a few newer rules can change that answer dramatically depending on when you sell. Here's what to know before the sign goes up.

THE BC HOME FLIPPING TAX

Since January 1, 2025, profit from selling a BC home you've owned less than 730 days can be taxed: 20% if you sell within the first 365 days, tapering to zero by day 730. It can apply even to your own home, unless a life-event exemption fits (job relocation, death, divorce, disability and similar) — though if you lived in and owned the home for at least a year, up to $20,000 of profit can be sheltered. If tax applies, a separate return is due within 90 days of the sale. Bottom line: if you've owned less than two years, talk to your accountant before you list — and to us about whether waiting pays.

OTTAWA HAS A RULE TOO

Separately, under the federal anti-flipping rule, profit on a home sold within 12 months of buying is generally taxed as business income — no principal residence exemption — unless a similar life-event exception applies. The two rules stack, which is why the under-two-years conversation matters.

YOUR PRINCIPAL RESIDENCE & TAXES

Outside those windows, the sale of your principal residence is generally tax-free in Canada — but it still must be reported on your income tax return for the year you sell. Investment properties and secondary homes are a different story: capital gains apply, and planning ahead with an accountant can save real money.

WHAT IT COSTS TO SELL

Plan for the real estate commission plus 5% GST on it, legal or notary fees to discharge title, a mortgage discharge or prepayment penalty if you're breaking a term (ask your lender early — this one surprises people), strata document fees if you're selling a condo or townhome, and whatever prep, repairs or staging your home needs to show its best.

THE BUYER'S 3-DAY RESCISSION PERIOD

Every accepted offer in BC comes with a built-in three business days during which the buyer can walk away by paying you 0.25% of the price. It can't be waived, so we build it into your timeline — and a well-prepared listing (inspection-ready, documents in order) is the best insurance against a buyer getting cold feet.

DISCLOSURE: HONESTY IS THE CHEAPEST OPTION

Most sellers complete a Property Disclosure Statement, and known hidden problems — the kind a buyer can't see — must be disclosed regardless. Answering honestly isn't just ethics; it's what protects you from the sale coming back to bite you later.

PRICE IT TO THE MARKET, NOT THE MEMORY

What your neighbour got in 2022 isn't a pricing strategy. We track Campbell River sales daily and publish a monthly market update — the difference between selling in two weeks and sitting for two months is almost always the first week's price.

Rules change and every situation is different — treat this page as a friendly map, not legal or tax advice. Current details live at gov.bc.ca, and your lawyer, notary or accountant has the final word.

Thinking about selling? Let's talk it through first. Erika 250-202-1058 · Jenna 778-348-3599 · erika@erikahaley.ca