The BC Government has added information about how the BC home flipping tax applies to presale contracts to their website.
Please see some of the added information below;
Presale Contracts
If you enter into a presale contract to purchase a property under development, and you buy that property (i.e., you close on the property once it is complete), for the purposes of the 2 year window of the tax, you will be considered to have acquired it on the date you entered into the presale contract.
If a person is assigned a pre-sale contract and then closes on the built property, the acquisition date of the built property is the date they were assigned the contract.
When you assign a presale contract to another person within 2 years of entering into the presale contract, you will pay tax on any profit received from the assignment.
Examples:
- You enter into a presale contract on June 1, 2025 for a condo that will complete on March 1, 2027. If you buy the condo when it is completed on March 1, 2027, you will be considered to have acquired the property on June 1, 2025
- A person enters into a presale contract on June 1, 2025 for a condo that will complete on March 1, 2027. On December 1, 2025, the person assigns the right to buy the property to you. If you buy the condo when it is completed on March 1, 2027, you will be considered to have acquired the property on December 1, 2025