Premier David Eby has been clear that speculators are in his crosshairs, and with the 2024 budget his government has announced details of a new 'BC Home Flipping Tax.'
It’s just 20% on profits. Not 20% on the sale price. Just off the top of my head I could buy a place for $500,000, create a separate LLC renovation company that I would “hire” and use to fix the place up to flip. I’d “pay” my subsidiary renovation company $90,000 to get it prepped to flip, sell it for $600,000, and only pay 20% of the last $10,000 I made on it. AKA $2,000.
So what the hell does this fix? It sounds like the government will get some extra money and it will just make all the flippers charge even more for housing, further driving the prices up.
Just ban ANYONE from owning more than 3 homes. That’ll get rid of commercial flippers and full time landlords renting out 20 homes and all the air bnb’s instead of a bs tax to further increase housing costs.
It’s just 20% on profits. Not 20% on the sale price. Just off the top of my head I could buy a place for $500,000, create a separate LLC renovation company that I would “hire” and use to fix the place up to flip. I’d “pay” my subsidiary renovation company $90,000 to get it prepped to flip, sell it for $600,000, and only pay 20% of the last $10,000 I made on it. AKA $2,000.
So what the hell does this fix? It sounds like the government will get some extra money and it will just make all the flippers charge even more for housing, further driving the prices up.
Just ban ANYONE from owning more than 3 homes. That’ll get rid of commercial flippers and full time landlords renting out 20 homes and all the air bnb’s instead of a bs tax to further increase housing costs.