The tax side of an assignment sale
Doorvia Guides · August 12, 2026
Assignment profits can be taxed as business income rather than capital gains, and GST/HST may apply to the assignment fee.
Selling a pre-construction contract has tax consequences that surprise many sellers. Depending on your intention when you bought and your pattern of activity, the Canada Revenue Agency may treat the profit as business income, fully taxable, rather than as a capital gain.
There is also a GST/HST dimension: tax rules made assignment sales of newly constructed residential housing taxable, which can mean tax applies to the amount above your original deposits.
Do not rely on a sales office or a social media summary. Get written advice from an accountant before you list an assignment, and make sure the assignment agreement clearly allocates who is responsible for any tax and for the developer's fees.
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