Pre-Construction Condo Investors & Flips Case Studies
6 worked Pre-Construction Condo Investors & Flips case studies — the position a client typically comes to us with, what we do, and what it is worth. Each is an illustrative example built on the rules that apply to pre-construction condo investors & flips work, not a specific client's file.
Case Study 1 · Objection and relief
$22,500 Of Penalties And Interest Cancelled On Relief — Mortgage Brokerage, Vancouver
Client: A mortgage brokerage · Where: Vancouver, British Columbia · Engagement: 8 weeks, fixed fee
Penalties and interest cancelled$22,500
Relief groundsAccepted
AssessmentAdjusted to filed position
The situation — A mortgage brokerage, Vancouver, British Columbia
An assessment of $22,500 landed at a mortgage brokerage in Vancouver, British Columbia following a desk review. It turned on industry-specific reporting obligations nobody had flagged. The auditor had not seen the records behind it.
What we did for A mortgage brokerage, Vancouver, British Columbia
We rebuilt the chart of accounts around how a pre-construction condo investors & flips business actually earns and spends. We then set out the legislative basis for the position alongside the documents supporting it.
The result — A mortgage brokerage, Vancouver, British Columbia
$22,500 of penalties and interest was cancelled under the taxpayer relief provisions, and the underlying assessment was adjusted to match the filed position.
Case Study 2 · Records and systems rebuilt
19 Months Reconciled And $17,000 Of Input Tax Recovered — Property Management Company, Victoria
Client: A property management company · Where: Victoria, British Columbia · Engagement: 11 weeks, fixed fee
Months reconciled19
Input tax recovered$17,000
Close time4 days
The situation — A property management company, Victoria, British Columbia
Nothing reconciled at a property management company in Victoria, British Columbia. Every filing started with 19 months of cleanup. The file was carrying seasonal revenue reported without matching the costs that produced it.
What we did for A property management company, Victoria, British Columbia
We rebuilt from source rather than correcting on top of the existing file. We reviewed every sector-specific deduction against the current rules and claimed the ones that had been missed. Then we set the routine that keeps it clean.
The result — A property management company, Victoria, British Columbia
19 months reconciled to the bank. The close now takes 4 days, and $17,000 of previously unclaimable input tax was recovered in the process.
Case Study 3 · Planning that cut the bill
Remuneration Review Saved $64,000 Across Corporate And Personal Returns — Short-Term Rental Operator, Surrey
Client: A short-term rental operator · Where: Surrey, British Columbia · Engagement: 9 weeks, fixed fee
Combined saving$64,000
ScopeCorporate + personal
Future yearsNo rework needed
The situation — A short-term rental operator, Surrey, British Columbia
Nothing was wrong at a short-term rental operator in Surrey, British Columbia. The filings were on time and accurate. What they were not was planned. A previous accountant with no experience of this sector had never been reviewed.
What we did for A short-term rental operator, Surrey, British Columbia
We documented the positions to the standard the CRA applies to this sector specifically. We ran the numbers across both the corporate and personal returns, so the saving was real rather than deferred into someone else's hands.
The result — A short-term rental operator, Surrey, British Columbia
$64,000 came off the combined corporate and personal tax bill, and the structure holds for future years without further work.
Client: A condo corporation manager · Where: Lethbridge, Alberta · Engagement: 3 weeks, fixed fee
Proposed tax cleared$81,000
Review duration3 weeks
OutcomeNo change
The situation — A condo corporation manager, Lethbridge, Alberta
A condo corporation manager in Lethbridge, Alberta was selected for review. Sector deductions claimed on a general-business basis rather than the pre-construction condo investors & flips rules had shown up in the CRA's automated matching. The proposed adjustment on pre-construction condo investors & flips accounting and tax came to $81,000.
What we did for A condo corporation manager, Lethbridge, Alberta
We aligned the reporting calendar with the sector’s own seasonal cycle rather than a generic year-end. Every figure in the response traced to a source record the auditor could verify without asking a second question.
The result — A condo corporation manager, Lethbridge, Alberta
The review closed with no change. $81,000 of proposed tax came off the table, and the documentation now in place makes the next review a short one.
Case Study 5 · Sale and succession
$265,000 Sheltered By The Lifetime Capital Gains Exemption — Residential Rental Portfolio, Regina
The situation — A residential rental portfolio, Regina, Saskatchewan
A residential rental portfolio in Regina, Saskatchewan had an offer on the table and 32 months to close. The shares did not qualify for the capital gains exemption. A shareholder loan balance that would have been picked up as income on closing was part of the reason.
What we did for A residential rental portfolio, Regina, Saskatchewan
We purified the corporation so the shares met the qualifying tests. We reassigned the asset classes on the CCA schedule and corrected the opening balances. All of it was done well ahead of the closing date.
The result — A residential rental portfolio, Regina, Saskatchewan
The sale closed on schedule with $265,000 sheltered by the lifetime capital gains exemption across the shareholders.
The situation — A commercial landlord, Ottawa, Ontario
The structure at a commercial landlord in Ottawa, Ontario needed fixing. The file was carrying equipment and asset classes assigned by guesswork rather than the CCA schedule. Every option for fixing it ran through a reorganisation that had to be done without triggering tax.
What we did for A commercial landlord, Ottawa, Ontario
We worked with the client's lawyer. Together, we rebuilt the chart of accounts around how a pre-construction condo investors & flips business actually earns and spends. We also prepared the elections, resolutions and valuations the structure needed to stand up.
The result — A commercial landlord, Ottawa, Ontario
The structure now matches the business. Annual saving of $10,500, and the reorganisation itself was tax-neutral.
Reviewed by Udit Gupta, Founder and Tax Accountant for the 2025 tax year. These case studies are illustrative worked examples composed from the CRA rules that apply to this type of work, not specific client files; figures are representative and outcomes depend on your own facts.
