Coquitlam · Presale assignment
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.
Quick Answer
What should you know about Coquitlam Presale Assignment Rules?
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. Craig Johnston, Top 1% Team Member — Greater Vancouver REALTORS® and 47+ year Tri-Cities resident, can walk you through the local context. Free Strategy Call ends with a written one-page plan in 24 hours.
Presale assignment · Coquitlam
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.
Most presale contracts require the developer's written consent before an assignment can be completed. Some developers prohibit assignments entirely until completion.
Developers commonly charge an assignment fee ($2,500-$10,000 typical) to cover their administrative costs.
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.
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.
PTT applies to the assignee at completion (when the contract is finalized into title). The assignor does not pay additional PTT.
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.]
Craig Johnston is a 47-year Coquitlam resident and licensed REALTOR® at The MACNABS, Royal LePage Elite West. Top 1% Team Member — Greater Vancouver REALTORS®. Talk through your specific situation — no pressure, no obligation.
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