- GST and residential real estate transactions
The previous BC Standard Form Contract of Purchase and Sale did not specify which party would pay GST and whether it was included in, or additional to, the purchase price. However, as of November 2024, the contract has been updated to provide that: (i) the seller will pay GST if it applies, and (ii) GST is inclusive of the purchase price.
Review the updated contract to become familiar with the new terms. Of course, the parties are free to negotiate different terms (e.g., GST will instead be paid by the buyer), which would then need to be set out in the contract. Take three minutes to watch this video of Claims Counsel Marlon Song describing common GST traps and tips.
- BC home flipping tax
The Residential Property (Short-Term Holding) Profit Tax Act is effective January 1, 2025. Unless an exemption applies, the BC home flipping tax applies to profit earned from selling property in BC (including presale contracts) if the property was owned for less than 730 days. Property purchased before the tax’s effective date may still be subject to the tax if sold on or after January 1, 2025 and owned for less than 730 days.
Learn more about the BC home flipping tax.