Flipping change in Budget 2022

Canada's 2022 Federal Budget takes aim at "flipping" residential property by eliminating the Principal Residence Exemption for properties owned for less than a year.

As of January 1, 2023, the new rule will deem profits from the sale of a residential property to be business income if the property was owned for less than 12 months.

The rule would not apply to sales due to certain qualifying life events (for example, death, changes in family composition, disability, certain changes in employment, etc.).