Will this flip make money after tax?
Enter the purchase, renovation and selling numbers, how long you will hold the property and your marginal tax rate. In Canada, a home sold within a year is taxed in full as business income.
Your estimate
PROFIT AFTER TAX
How this is estimated
What the calculator assumes.
Tax. A home held less than 365 days and sold from 2023 on is a flipped property: the profit is business income, fully taxable, unless a life event applies. Source: CRA. British Columbia adds its own home flipping tax, and a substantial renovation can make the sale subject to GST/HST.
The 70% rule. A rule of thumb from US investors: pay no more than 70% of the after-repair value, minus the renovation. It leaves room for costs and profit; it is not a rule of law.
More detail. For a sale after a longer hold, use the capital gains on property calculator.
Related