Presale & Investor Tools
Presale Assignment Calculator — BC
What you actually clear when you assign a presale contract. Models the developer assignment fee, GST on the lift, federal income tax, and the BC Home Flipping Tax — the four things that quietly halve presale profits.
A presale assignment is the resale of an unassigned presale contract before the building completes. The "lift" (assignment price minus original contract price minus paid deposits) is income — and BC + Canada now tax it aggressively.
Use this calculator to estimate net cash in your pocket after the developer's assignment fee, GST on the assignment lift, full income-tax treatment under the federal anti-flipping rule, and the new BC Home Flipping Tax.
How Presale Assignments are Taxed in 2026
The Four Stacked Costs
- Developer assignment fee — typically 1%–3% of the original purchase price; some developers prohibit assignments outright before completion.
- 5% GST on the assignment lift — since May 2022 the CRA's position is that the assignor must collect and remit GST on the assignment portion (not on deposits, which are recoverable).
- Federal anti-flipping rule + full income tax — gains on properties (including presale contracts) held under 365 days are deemed 100% business income, taxed at your full marginal rate (no 50% capital-gains inclusion).
- BC Home Flipping Tax — 0–20% on the profit, sliding scale, applies to assignments closing on/after January 1, 2025.
Why Assignments Often Lose Money
Sticker prices on presale resales look impressive, but the assignment lift is taxed twice — once federally as full income, once provincially under the BC Home Flipping Tax — plus 5% GST and the developer's cut. On a $150K paper gain held under 365 days, an assignor can easily clear less than $40K net.
FAQ
Can I always assign my presale contract?
No. Almost all developer contracts now include strict assignment clauses — many prohibit assignments before completion entirely, and most that allow assignments charge a fee and require developer written consent. Always check the assignment clause in your purchase agreement before trying to assign.
Is GST really payable on the assignment?
Yes — for assignments of new residential housing entered into on or after May 7, 2022. The assignor must collect 5% GST on the lift (not on the recovered deposit) and remit it to the CRA. Pre-May 2022 contracts still follow the old rules.
Does the federal anti-flipping rule apply to presale contracts?
Yes. The CRA explicitly extended the anti-flipping rule to assignments: a presale contract held under 365 days that is assigned is deemed business income at full marginal rate, with no 50% capital-gains discount and no principal-residence exemption.
Does the BC Home Flipping Tax stack on top of income tax?
Yes. The BC Home Flipping Tax is a separate provincial tax — it does not replace federal income tax. Assignors held under 730 days face both layers simultaneously. See our BC Home Flipping Tax calculator for details.
Legal Disclaimer
This presale assignment calculator is for general informational and estimation purposes only. Results are illustrative and assume the worst-case stacked-tax scenario; actual liability depends on your facts and circumstances, the specific developer contract, the GST treatment, and current tax legislation. This is not legal, tax, or accounting advice. Always consult a CPA, GST specialist, and BC real-estate lawyer before assigning a presale. Dan Marusin PREC, Renanza Realty, and danmarusin.com assume no liability for any errors, omissions, or financial decisions made on the basis of this calculator's output.