Everything you need to know about Preconstruction Assignment Sales

[@RealEstateTaxTips]

For a detail explanation and further clarification of this topic, please visit the blog post: realestatetaxtips.ca/preconstruction-assignment-sales/

[@svc2461]

Looking for more information from an assignee point of view. Thanks for this video.

[@chadpescod-realtor3308]

Wow your channel is a goldmine. I have a lot to watch now and learn. Thank you Cherry

[@xxxh8042]

Thanks, what you went thru is exactly type of info I’ve been looking for. Understood that the amount of tax needed to pay in a assignment sale GAIN of $50K. Wonder what if the assignment sales is NOT a gain of $50K but rather a LOSS of $50K. How will the HST affect the income tax if it is a Loss on the assignment sale ?

[@chrisg8050]

Hey I'm so glad I found this! Quick question: what about a situation where an assignment, including assignment fee, realtor commissions, etc results in a net loss? Does intention enter into this in this scenario, as well?

[@jokerfairy7481]

HST is 13% right? HST on $150K should be $19,500? How did you get the $17K? In case i missed something, can you please clarify? Thank you =)

[@AntzMr]

I'm confused about the part if your home is and have been your primary residence when you sell it, you don't need to pay any capital tax. Is that correct?

[@nitigupta1220]

Very well explained

[@RealEstateTaxTips]

Glad it was helpful!

[@NajibShams]

Thank you for the video.

[@FarhaHabib-f5j]

Hi Cherry , Your videos are so informative I am so thankful, I have question we are doing Assignment Sales in this year (2023) in July or august because our builder extended date. is there the same Tax rule applied this year as you mentioned in 2022? Thank you .

[@RealEstateTaxTips]

Yes, the same rule would apply and the assignment fee would be considered regular income.

[@k.grewal9134]

thank you explained very well

[@RealEstateTaxTips]

Glad you liked it

[@vaykunthanvaratharajah2835]

Excellent Video! 😀

[@gregmanuel6944]

Amazing channel!! Question, are you able to claim interest on an unsecured line of credit if you used the money for a deposit on a pre-construction condo or for renovations on a rental property?

[@RealEstateTaxTips]

The interest would be considered a "soft cost" per the CRA and added to the value of the property

[@cruisertechgt]

Confused about the assignment fee. Isnt the assignment fee the amount you have to pay to assign the sale to somone else? Though in the video it sounds like the assignment fee is the profits you made on the sale.

[@TheClaudio7078]

Something that wasnt built had its value go up?

[@matthewtan4556]

Hi Cherry, great video! The sale was done (agreement signed) prior to May 6, 2022, but the builder formally approved the assignment sale after May 6, 2022. What determines the date of assignment sale for HST purposes in this case...before May 6, 2022 or after?

[@RealEstateTaxTips]

Without seeing all the legal paper and having a proper engagement, my professional liability does not allow me to provide professional advice. You should check with your accountant who has access to all the legal documents to make sure you are filing it properly. Having said that, generally speaking, I would go with the date of acceptance without conditions. Not professional advice. General sharing purpose.

[@jorgemeneses5239]

Super informative, thanks! This kind of answers my question that I made on another of your videos in regards to collecting HST. So, do I understand correctly that HST would not need to be collected when I am making an OTP to a seller and assigning the rights to purchase the property to someone else? In that scenario only income tax would be applicable to the assignment fee that I collect then?

[@RealEstateTaxTips]

Jorge, not sure what OTP Is... in this particular example, these sales are related to pre-construction homes...which will be subject to HST if executed after May 6, 2022

[@jorgemeneses5239]

@@RealEstateTaxTips thanks for your reply, Cherry! Sorry, OTP means Offer to Purchase, I wanted to refer to the Standard Agreement of Purchase and Sale (Form 100) in Ontario.

[@n1k0flow]

Oh my brain... Great video tho. I learned a lot! I loved the part when you said 'I'm just a messenger' at 6:43 mark. I laughed a bit. It's like you know that your audience are going to get mad when you explained CRA's rule.

[@RealEstateTaxTips]

Haha, I have to use that line a lot! I appreciate your comment and glad you enjoyed it.

[@307586040]

Thank you for sharing

[@RealEstateTaxTips]

Thanks for watching!

[@theva_Americas]

Great Vedio

[@RealEstateTaxTips]

Glad you find it useful