New year, new tax? As of Wednesday, January 1, the Government of British Columbia’s new home flipping tax is now in effect, which the Province says is “intended to discourage short-term holding of property for profit.”

The home flipping tax rate begins at 20% of the “net taxable income” earned from a property sold within 365 days of acquiring it and then decreases on a pro rata basis until 730 days, after which the tax no longer applies.

The taxable income on a property sale is calculated by subtracting the original purchase price and the costs of improving the property from