Under the federal Income Tax Act, the capital gains inclusion rate is 50% (as of 2026-07-27 — verify current). On March 21, 2025, the federal government cancelled the previously proposed increase to a 66.67% inclusion rate on gains over $250,000 (as of 2026-07-27 — verify current). Verify current federal tax rates with a licensed tax professional before acting.

Under the federal Income Tax Act, a principal residence is generally exempt from capital gains tax if it was ordinarily inhabited by you, your spouse, former spouse, or child, and you designate it as your principal residence. Only one property per family unit may be designated for any given year (as of 2026-07-27 — verify current). Verify eligibility for your specific situation with a licensed tax professional or BC notary before acting.

Yes. Under the federal Income Tax Act, properties that do not qualify for the principal residence exemption—such as investment properties, second homes, and recreational properties—are subject to capital gains tax on disposition. The taxable capital gain is calculated as 50% of the gain (sale price minus adjusted cost base) (as of 2026-07-27 — verify current). Verify the adjusted cost base and applicable deductions with a licensed tax professional before acting.

The Home Flipping Tax Act, SBC 2024, imposes a provincial tax on properties sold within 730 days of purchase, with rates declining from 20% (under 365 days) to 0% (730+ days) (as of 2026-07-27 — verify current; effective January 1, 2025 — verify current). Federal anti-flipping rules under the Income Tax Act deem profit on properties owned fewer than 365 days as business income (100% taxable), not capital gains (as of 2026-07-27 — verify current). Verify both provincial and federal tax obligations with a licensed tax professional before acting.

No. Under the federal Income Tax Act, the LCGE—increased to $1.25 million effective June 25, 2024 (as of 2026-07-27 — verify current)—applies only to qualified small-business-corporation shares and qualified farm or fishing property. The LCGE does not apply to personal residential real estate, including principal residences, second homes, or investment properties. Verify eligibility for farm or fishing property with a licensed tax professional before acting.

Under the federal Income Tax Act, the adjusted cost base is the purchase price plus eligible capital expenses such as legal fees, land transfer taxes, and capital improvements that extend the property's useful life (as of 2026-07-27 — verify current). Repairs, maintenance, and mortgage interest are generally not included. Verify eligible additions to the adjusted cost base with a licensed tax professional before acting.

Partial loss may occur. Under the federal Income Tax Act, the principal residence exemption may be prorated based on the number of years you ordinarily inhabited the property versus the number of years it was rented (as of 2026-07-27 — verify current). A change-in-use election may be available to defer or mitigate the tax. Verify your specific situation with a licensed tax professional before acting.

Capital gains tax on real estate is calculated and remitted federally under the Income Tax Act; BC does not impose a separate provincial capital gains tax (as of 2026-07-27 — verify current). However, BC does impose the Home Flipping Tax under the Home Flipping Tax Act, SBC 2024, on short-term sales (as of 2026-07-27 — verify current). Verify federal and provincial filing obligations with a licensed tax professional before acting.

The federal Income Tax Act provides relief in certain circumstances: deemed disposition at death may allow spousal rollover or principal residence exemption; divorce or separation may permit transfer to a spouse without immediate tax; and involuntary dispositions may qualify for relief (as of 2026-07-27 — verify current). Verify eligibility and specific rules under your circumstances with a licensed tax professional or BC notary before acting.

Under the Income Tax Act, capital gains must be reported in your federal income tax return for the taxation year in which the disposition occurred; payment is due by your filing deadline (generally April 30 or June 15 for self-employed individuals) (as of 2026-07-27 — verify current). Non-residents may be subject to withholding under section 116 of the Income Tax Act. Verify reporting deadlines and clearance certificate requirements with a licensed tax professional before acting.