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1. Accommodation was being provided in a manner similar to a hotel or motel and on Dec. 8, 2023, the strata hotel or motel had and continues to have all of the following, which are provided in a manner similar to a hotel or motel:

• a staffed front desk on site;
• one or more employees or contractors that provide housekeeping services for overnight accommodations; and
• a platform providing platform services available exclusively for the use of owners offering short-term rentals at the property.

2. Accommodation was being provided in a manner similar to a hotel or motel, and more than one strata lot on the property is not able to be used as a principal residence by anyone due to a restriction under:

• zoning;
• a rental management agreement between the manager and an owner of a strata lot; or
• a restrictive covenant or a covenant under section 219 of the Land Title Act.

For strata hotels and motels operating on or after December, 8, 2023, the regulations are expected to have stricter standards. It is likely these buildings will need to meet all the criteria laid out in option 1 and at least one of the criteria listed in option 2.

General Details:

• The flipping tax will apply to the taxable income on a property sold within 730 days of ownership. If the property is sold within 1 year the tax will be the full 20%, from 366 -729 days the tax will decrease on a pro-rated basis to zero.  
• The tax applies to housing units, bare properties zoned for residential use and assignment sales or purchase contracts.
• The tax does not apply to property on First Nations Land .
• Properties purchased in 2023 and 2024 will be subject to the tax retroactively if sold within 730 days after January 1, 2025.
• The provincial flipping tax is separate and in addition to the federally administered anti-flipping rule.

Pre-sales and Assignments:

• For the purpose of the tax, people who have acquired a pre-sale contract will be considered to have acquired the property on the day they entered the contract.
• If you are assigned a pre-sale contract and close on the property, the date you were assigned the contract is considered the acquisition date for the purpose of the tax.
• Any profit gained from assigning a pre-sale contract will be subject to the flipping tax.

Exemptions:

• Exemptions for life circumstance such as death, divorce, illness, relocation for work, insolvency, etc. will be available.
• Exemptions for builders will be available such as if a housing unit is added to an existing property or property is purchased for the purpose of constructing buildings.
• Exemptions for certain entities such as registered charities, government, etc. are available.

The full list of exemptions and details can be found here