Starting in 2023 if you buy a property and sell it within the first year you will get taxed as business income on that sale. This means that the gain, minus any associated expenses will be fully taxable in the year of the sale.
There are some exceptions. These include:
– the death of the taxpayer or a related party
– an addition to your household such as the birth of a child, adoption, or taking care of an elderly parent
– the breakdown of your marriage or common law relationship
– a serious illness or disability of the taxpayer or related person
– work relocation or involuntary termination
– insolvency of the taxpayer
– destruction or expropriation of the home
And no, you can’t use the Principal Residence Exemption.
If you’re thinking of selling within the first year, you should talk to a tax professional first.