Flipping houses or condos? Know your tax obligations!

What is property flipping?

Property flipping is when individuals, including real estate agents, buy and resell homes in a short period of time for a profit. This also includes buying and selling a property before its official sale or construction—a process called an “assignment sale” but sometimes also referred to as “shadow flipping”.

Tax obligations related to property flipping:

You must report the money you make on all real estate transactions, including flips and assignment sales (of both pre-construction and resale homes), to the Canada Revenue Agency (CRA).

This could also include fees or commissions generated on these transactions.

Know your tax obligations:

The CRA is taking action to address non-compliance in the real estate sector, and to ensure that the principal residence tax exemption is claimed only by those who are eligible for it.


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