Are presale condo assignments taxed in BC?

Direct answer

Yes — three tax overlays apply when you assign a presale-condo purchase contract before completion. (1) GST: effective May 7, 2022, every assignment of a new or substantially renovated residential property is subject to 5% GST under the federal Excise Tax Act (Budget Implementation Act, 2022). The assignor charges 5% GST on the assignment fee (consideration over and above the deposit refund) and remits to CRA; the deposit portion paid back to the original purchaser is excluded from the GST base. (2) Income tax: CRA generally treats assignment profit as 100% business income (NOT a 50% capital gain) where the assignor never intended to occupy. The "intended occupancy" test is fact-dependent — documented intent (mortgage pre-approval for owner-occupancy, school enrolment, moving plans) materially affects the audit outcome. The federal anti-flipping rule (365-day deemed-business-income presumption) further hardens this for short holds. (3) BC SVT: an unfinished presale unit is exempt from Speculation and Vacancy Tax while uncompleted; SVT applies in subsequent years if the completed unit is not occupied per SVT rules. BC Home Flipping Tax generally does NOT apply to pre-title assignments but applies if you take title and then flip within 730 days. CPA + tax-lawyer review is essential before assigning.