Asked
I bought a house a year ago and it is killing me financially. The neighbours threatened to sue me into redoing a retaining wall (that was structurally fine but not aesthetically pleasing), my six year old roof leaked and the company wouldn't fix it and now my crawl is flooding.
I want to sell the lemon but I'm hoping to get back some of the cost of the repairs. Who do I need to talk to about the implications of the flipping tax or if it might even be applicable?
(Please do not tell me about the real estate market or your opinion about whether or not I'll recoup the costs. Just looking for advice on who to talk to about the flipping tax.)
Clint’s answer
Firstly... I'm so sorry to hear this kind of stress.
Selling before a year can have federal and, if you bought in BC, provincial flipping tax implications.
Selling after a year and before 2 if you live in BC can have provincial flipping implications.
But, to be taxed, one needs to have a realized gain on the investment after real estate fees, property tax costs, legal fees, and maybe capital repairs to roofs or retaining walls.
If you feel like you are going to profit from the purchase and sale, and you'd like to discuss further please feel free to reach out.
First step might be consulting a realtor to see what the place might sell for to get your answer on profit or loss.
Capital and non Capital losses can be carried forward into future years to help reduce taxes as well, and this might also be worth a discussion with a tax professional.
November 27, 2025
From Ask Clint: real questions from a Canadian public finance forum, answered by Clint Cole. Names are changed. This is general information, not advice for your situation, and rules and dollar figures may have changed since Clint answered. Terms