Can I assign my Coquitlam presale contract?

Depends on the developer's contract terms. Most permit assignments with developer consent and an assignment fee; some prohibit assignments entirely. Read your contract carefully.

How much profit is typical on a Coquitlam presale assignment?

Varies by market timing. In hot markets, $50,000-$200,000 profit per unit on a 2-year hold has been common. In cooler markets, profits compress or disappear. Past performance does not guarantee future returns.

Do I pay capital gains or income tax on assignment profit?

Most assignment profits are taxed as business income, NOT capital gains. 100% taxable at your marginal rate, vs. 50% taxable for capital gains. Talk to a tax accountant — there are some scenarios where capital gains treatment applies.

What is BC's Home Flipping Tax?

Effective January 1, 2025: additional BC tax on residential properties sold within 2 years of acquisition. 20% if sold within 365 days; declining to 0% by day 730. Applies to most residential sales but has exemptions for specific situations (death, divorce, job relocation, etc.). May apply to presale assignments.

How do I find an assignee for my Coquitlam presale?

Through a REALTOR® specializing in presale assignments. Note: assignments cannot typically be advertised on MLS the same way as resale homes; marketing channels are more limited. Builder-direct sales may be a path for some developments.

What is the assignment process timeline?

Typical: 30-60 days from listing to firm assignment, plus closing on the assignment itself, then waiting until the original completion date for the assignee to take title. Variable depending on developer cooperation.

Can I assign my Coquitlam presale contract for a loss?

Yes — assignments at a loss are common in cooling markets. Tax treatment of loss depends on whether it's classified as business income or capital loss. Talk to your accountant.

What is GST on a Coquitlam presale assignment?

Complex. Generally GST applies to the assignment profit (the markup over your original deposit and contract value). Confirm with a tax accountant — the rules changed in 2022.

Is presale assignment a good Coquitlam investment strategy?

Has been profitable for many investors in 2018-2022 hot markets. Risk profile: high. Returns depend on market timing, developer cooperation, and tax treatment. Currently faces additional headwinds from the Home Flipping Tax and possible market deceleration. [VERIFY current Coquitlam presale assignment market conditions.]

Should I assign or hold to completion in Coquitlam?

Depends on: tax position, market trajectory, financing readiness, intended use. Many investors who initially planned to assign end up holding through completion if market conditions soften. Plan for both scenarios.

Coquitlam · Presale assignment

Coquitlam presale assignment — the rules every investor should know.

Assigning a Coquitlam presale contract before completion is a common investor strategy in active developments like Burke Mountain and Westwood Plateau-base. The rules — and the tax consequences — are tight. Here is the straight read.

Book a Strategy Call Call Craig — 604-202-6092

Presale assignment · Coquitlam

Coquitlam presale assignment — every rule, every tax.

An assignment is the sale of your contract rights to a new buyer before the home is built and registered. The original buyer (assignor) sells their position to a new buyer (assignee). Common in Coquitlam presales, but heavily regulated.

Developer consent typically required

Most presale contracts require the developer's written consent before an assignment can be completed. Some developers prohibit assignments entirely until completion.

Assignment fees

Developers commonly charge an assignment fee ($2,500-$10,000 typical) to cover their administrative costs.

Income tax on the assignment profit

CRA treats assignment profit as business income (NOT capital gains) in most cases. 100% of profit is taxable as income at your marginal tax rate. Some assignments may qualify for capital gains treatment — depends on intent and history. Talk to a tax accountant.

GST on assignment

Assignments of new-construction contracts trigger GST. Generally the GST applies to the profit portion of the assignment, but rules are complex. Confirm with a tax accountant.

BC Property Transfer Tax

PTT applies to the assignee at completion (when the contract is finalized into title). The assignor does not pay additional PTT.

Anti-flipping rules

BC's Home Flipping Tax (effective January 2025) applies an additional tax on residential properties sold within 2 years of acquisition. Sliding scale: highest rate (20%) for sales within first year, declining to 0% by 2-year mark. May apply to assignments depending on circumstances. [VERIFY application to assignments specifically.]