Flipping Calgary Residential Property - New Tax Rules 2023

Flipping Calgary Residential Property - New Tax Rules 2023
Did you know you can now be taxed on your Calgary principal residence, when you come to sell it? There is a new federal law (Bill C-32) that came into effect on January 1st, 2023. This one focuses on trying to limit house flipping or speculation, by taxing the gains on any home that sells within 12 months of the
The new tax law will disallow the use of the principal residence exemption to shelter the capital gain realized on the sale of your home, if you’ve owned it for less than 12 months. Certain exceptions are allowed, such as death, disability, separation and work relocation. Instead, the gain will be taxable as business income. Home sellers in the past, have always been able to sell their primary/principal residence at any time without being taxed, this is a significant change starting in 2023.
This will affect small renovation businesses in Calgary that buy run down property an renovate it. They may have to keep it for 12 months! Cash flow restrictions can be harsh on small contractors. Is this a fair tax for Calgary?

Have any question contact Geoff, Realtor at CIR Realty, 403 608 5682. 
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