Anti Flipping Tax is Un American! (Because its in Canada, for now)

Canada has started a tax on flipping properties for any home sale within a year. This tax affect home flippers as well as home purchasers who just decide to sell in less than a year. This anti flipping tax is not in the US yet.

Currently in Canada home flippers get to use the capital gains tax exclusion on home flips. With the new tax, they would have to pay the business tax rate on their flips for all their flips unless they hold them for more than 365 days. There are a lot of ways to get around this, and some exclusions for job transfers and such.

Generally these taxes are an excess burden to consumers and they don’t really help make housing more affordable. Instead they just tend to increase consumers costs. These new anti flipping taxes in Canada go into effect Jan 1st 2023.

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