6 Pre-Construction Condo Investors & Flips tax and accounting engagements in full — what the client came to us with, what we did, and what it was worth. Each one is specific to pre-construction condo investors & flips work, not a general example.
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
An assessment of $22,500 landed at a mortgage brokerage in Vancouver, British Columbia following a desk review. The auditor had not seen the records behind industry-specific reporting obligations nobody had flagged.
What we did
We rebuilt the chart of accounts around how a pre-construction condo investors & flips business actually earns and spends, then set out the legislative basis for the position alongside the documents supporting it.
The result
$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 in Victoria, British Columbia was carrying seasonal revenue reported without matching the costs that produced it. Nothing reconciled, and every filing started with 19 months of cleanup.
What we did
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 set the routine that keeps it clean.
The result
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
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
We documented the positions to the standard the CRA applies to this sector specifically, and 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
$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 in Lethbridge, Alberta was selected for review after sector deductions claimed on a general-business basis rather than the pre-construction condo investors & flips rules showed 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
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
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
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, and a shareholder loan balance that would have been picked up as income on closing was part of the reason.
What we did
We purified the corporation so the shares met the qualifying tests, then reassigned the asset classes on the CCA schedule and corrected the opening balances well ahead of the closing date.
The result
The sale closed on schedule with $265,000 sheltered by the lifetime capital gains exemption across the shareholders.
A commercial landlord in Ottawa, Ontario was carrying equipment and asset classes assigned by guesswork rather than the CCA schedule, and every option for fixing it ran through a reorganisation that had to be done without triggering tax.
What we did
Working with the client's lawyer, we rebuilt the chart of accounts around how a pre-construction condo investors & flips business actually earns and spends and prepared the elections, resolutions and valuations the structure needed to stand up.
The result
The structure now matches the business. Annual saving of $10,500, and the reorganisation itself was tax-neutral.
Reviewed for the 2025 tax year by Udit Gupta, Certified Tax Accountant. Figures describe representative engagements of this type; outcomes depend on your own facts. Client names and identifying details are omitted for confidentiality.
