The Federal Government’s 2022 budget proposes to target property flippers to endure they are fully taxed on profits.
Specifically, any person who sells a property that they have held for less than 12 months will be considered to be flipping properties and would be subject to full taxation on their profits as business income.
There are exemptions for Canadians who sell their home due to certain life circumstances, such as a death, disability, the birth of a child, a new job, or a divorce. The principal residence exemption will still apply for Canadians who use their houses as homes
The proposed rules would apply to residential properties sold on or after January 1, 2023.