Assigning a BC Presale: GST & the Flipping Taxes
Selling (assigning) a presale contract before completion used to be a quick flip. In 2026 it sits under three overlapping tax regimes — GST on assignments, the federal flipping rule, and BC's home flipping tax. Here's what each one does.
Reviewed July 29, 2026 · Facts cited to CRA, BC government and BCFSA sources below
What is a presale assignment?
An assignment is selling your contract for a presale home — not the home itself — to a new buyer before the building completes. The new buyer steps into your shoes, takes over your obligations, and completes with the developer. Almost every BC presale contract requires the developer's consent to assign and most charge an assignment fee; many also restrict when assignments are allowed at all.
Do you pay GST on an assignment sale?
Yes — since May 7, 2022, all assignments of new-home purchase agreements are taxable for GST, no matter why you originally bought. GST is charged on the assignment amount, with the portion that merely reimburses your deposit excluded from the taxable base. This ended the old debate about "intention" — there is no GST-free assignment of a new home anymore.
How does the federal flipping rule apply?
Since January 1, 2023, profit on a housing unit — or an assignment of one — disposed of within 365 days is taxed as fully-taxable business income: no capital-gains treatment and no principal residence exemption. Exceptions exist for major life events such as death, disability, separation, a new job in another city, or insolvency. Hold longer than a year and the normal tax rules apply instead.
How does BC's home flipping tax work on presales?
BC's home flipping tax (in force since January 1, 2025) taxes profit from disposing of a home or presale contract: 20% within the first 365 days, sliding to zero at 730 days. For assignments, the clock starts the day you signed the original presale contract — and if you complete the purchase, the time you held the contract counts toward your ownership period. Two harsh details: assignments get no primary-residence deduction, and presale contracts don't qualify for the builder/developer exemptions. Life-event exemptions (death, divorce, illness, job loss, relocation) can reduce or eliminate the tax but generally still require filing a return.
BC home flipping tax by holding period
One more trap: your buyer's GST rebate
If your original agreement predates March 20, 2025, a first-time buyer who takes your assignment cannot claim the First-Time Home Buyer GST Rebate — worth up to $50,000 to them on a sub-$1M home. That materially affects what an assignment of an older contract is worth to the largest pool of buyers. How the rebate works: our GST rebate guide.
Common questions
Can I assign my presale contract in BC?⌄
Usually yes, but only with the developer's consent, and most contracts charge an assignment fee. Check your purchase agreement — it sets out whether assignment is allowed, the fee, and any conditions like a minimum percentage of the building sold first.
Do I pay GST when I assign a presale contract?⌄
Yes. Since May 7, 2022, every assignment of a purchase agreement for a new home in Canada is subject to GST, regardless of your original intention when buying. GST applies to the assignment amount, excluding the portion that just recovers the deposit you already paid.
How is assignment profit taxed in 2026?⌄
Three layers can apply: GST on the assignment sale itself; the federal flipping rule, which taxes profit as fully-taxable business income if you held for under 365 days; and BC's home flipping tax of up to 20% if you dispose of the contract within 730 days of signing it.
Does BC's flipping tax apply if I assign after two years?⌄
No. BC's home flipping tax hits 20% of profit within the first 365 days from signing the presale contract, declines over the second year, and reaches zero at 730 days. Assigning a contract you signed more than two years ago is outside the tax.
Does the primary residence exemption protect an assignment?⌄
No. BC's primary residence deduction is not available on assignments of presale contracts — you never lived in the home, because it doesn't exist yet. The federal principal residence exemption likewise can't apply to a home you never occupied.
Can the person buying my assignment claim the first-time buyer GST rebate?⌄
Only if the original purchase agreement was signed on or after March 20, 2025. A first-time buyer who takes an assignment of a pre-March-2025 contract is not eligible for the rebate — a real pricing consideration when marketing an older assignment.
Sources
- Province of BC — BC home flipping tax
- Province of BC — BC home flipping tax: pre-sale contracts
- CRA — GI-120: Assignment of a purchase and sale agreement for a new house or condominium unit
- CRA — Property flipping rule
This guide is general information, not tax or legal advice. Rules change and individual situations differ — confirm your own eligibility with the Canada Revenue Agency, the Province of BC, or a professional advisor before relying on any figure here.
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