Residential Property Flipping Rule

Buyers who purchase a residential property and sell it under 12 months of ownership may potentially put themselves at risk of paying this tax. Under these new rules, any profit made from a sale of residential property within a year would be taxed as business income and ineligible for either the 50 per cent capital gains rate or the principal residence exemption.  

Exemptions include:

• household addition, such as birth, adoption, or care of an elderly parent,
• breakdown of a marriage or common-law partnership,
• threat to personal safety, such as domestic violence,
• change in employment,
• insolvency, or
• involuntary disposition, such as from a natural or human-caused disaster.