Selling a flip in Ontario: the checklist

60 days before you list: tax, permits and the payout

• Count your days. Write down the date you took possession and the date that's 365 days later. Sold before that day, CRA treats the profit as business income (see the 365-day rule below). Remember it's the closing date that counts, not the listing date.
• Book a call with an accountant. Ask two questions: how the profit will be taxed, and whether your renovation makes the sale subject to HST. It's much cheaper to ask now than after the offer is signed.
• Close every permit. Book the final inspections for any building, plumbing or electrical permit. A buyer's lawyer can search for open permits and work orders, and an open one can hold up the closing or cost you a price cut.
• Gather the paperwork as the work finishes: permits and inspection sign-offs, the electrical (ESA) certificate, receipts, contractor names and any warranties on the roof, windows, furnace or appliances. Buyers pay more for a flip that comes with proof.
• Ask your lender for a payout statement. It shows the balance and the prepayment penalty on a given date, usually the higher of 3 months' interest or the interest rate differential. Plan the closing date around it if you can.
• In Toronto, check the Vacant Home Tax. A house left empty for more than 6 months in a year can owe 3% of its assessed value unless the renovation exemption applies, and the yearly declaration is due either way.

30 days before: price, photos and your plan

• Price it from what's sold, not what's listed. Look at renovated homes that sold nearby in the last few months, and be honest about the parts you didn't redo. A flip that sits loses money every month in interest and holding costs.
• Run the numbers once more in the house flipping calculator with the real costs so far: the lowest price you'd accept is the one that still covers the payout, the selling costs and the tax.
• Deep clean, then stage. Empty renovated rooms look smaller in photos. Even a few key pieces in the living room, kitchen and main bedroom help.
• Book professional photos after the cleaners and stagers, in daylight. Most buyers decide from the photos whether to book a showing.
• Write down what you did in a one-page renovation summary: the work, the year, who did it, the permits and the warranties. You'll attach it to the listing and hand it to buyer agents.
• Choose how you'll sell. A full-service agent usually charges about 5% plus HST. With a flat fee MLS® listing the home goes on the MLS® System and realtor.ca from $99.99 for 2 months plus HST, and you choose what to offer the buyer's agent.

7 days before: documents and going live

• Engage your real estate lawyer now, so they can review offers quickly and are ready for the closing.
• Have these ready for buyers: the renovation summary, permits and sign-offs, the property tax bill, average utility costs, the survey if you have one, and any rental equipment contracts (water heater, furnace) the buyer would take over.
• Tell buyers about what you know. Ontario has no required disclosure form, but you can't stay silent about a hidden defect you know of that makes the home dangerous or unfit to live in. Disclosing the work and attaching the permits protects you.
• Set your showing times and how you want to be reached. Buyer agents' showing requests come straight to you to confirm.
• Keep utilities, heat and insurance on. Many insurers need to be told when a house is empty or under renovation; check your policy covers the listing period.
• Sign the listing agreement and go live. Offers come to you directly; your lawyer reviews them before you sign.

The 365-day flipping rule, in plain words

Since January 1, 2023, CRA's residential property flipping rule treats the profit on a home owned less than 365 consecutive days as business income: all of it is taxed at your marginal rate, with no capital gains treatment and no principal residence exemption. A loss on such a sale counts as nil. The rule doesn't apply when a life event caused the sale, such as a death, a separation, a serious illness, an involuntary job loss or a move for work.

Holding past a year doesn't make it a capital gain automatically. CRA says it remains a question of fact, and a home bought to renovate and resell is usually business income however long you held it. The house flipping calculator shows both cases from 12 months on.

HST on a substantial renovation

If you bought the house intending to substantially renovate it and sell it, CRA treats you as a builder, even for a one-time flip, and the sale is generally subject to HST (CRA, RC4052). A renovation is substantial when 90% or more of the interior (livable areas) is removed or replaced. A new kitchen, bathrooms, floors and paint usually don't reach that; a gut job can. If yours might, settle it with your accountant before you set the price, since the HST may have to come out of it.

Tearing the house down and building a new one is different again: in Ontario, selling a new home nobody has lived in needs a vendor licence from the Home Construction Regulatory Authority. Ask your lawyer before you start that kind of project.

When to call an accountant

• You'll close before the 365th day and no life event applies.
• The renovation came close to 90% of the interior, or you added or rebuilt living space.
• You've lived in the house for part of the time and want to know if the principal residence exemption applies.
• You've flipped before, or bought through a corporation or with partners.
• This page is general information, not tax or legal advice.

Selling the flip on MLS® for a flat fee

• A flat fee MLS® listing puts your flip on the MLS® System and realtor.ca from $99.99 for 2 months, plus HST.
• You choose what to offer the buyer's agent, and you keep what a full-service agent would have charged on top.
• Showing requests and offers come to you, and your lawyer closes it.
• Holding instead of selling? The BRRRR calculator and the rent vs sell calculator use the same Ontario costs.

Selling a flip: questions

Flat fee MLS® prices

Plus 13% HST on Ontario listings; no tax on Alberta listings. The monthly plan can be cancelled any time.

Flipping more than one? Pay once for the next sales

Buy listing credits in My Account after your first listing: 2 credits save 10%, 3 save 25%. Credits never expire, keep today's price and work on any property, for sale or for rent.

Plus 13% HST on Ontario listings. Codes like FREEUPGRADE don't apply to bundles. Already listed with us? Buy credits in My Account.

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