Selling the paper on a pre-build

My question is: Canadian-specific
QUESTION: Hi, I purchased a presale condo last year, planning on moving in
this summer.  However, the market has risen some more.  Now I'm thinking of
selling it on assignment.  So what are the implications, if any, for income
taxes?  Would it be considered capital gains, or nothing because it's
considered principal residence (even though I've never lived in it)?  This
is my 1st and only home purchase.
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david ingram replies:
It is not tax free because you have not lived in it.
Therefore, it is either straight income or a capital gain.
If you were genuinely going to move into the unit, it is capital gains and
only 50% is taxable using schedule 3 and putting it on line 127.
If the "evidence" showed that you intended to "flip" it, the whole profit is
taxable with the rest of your income by filling in schedule 2124 and putting
the results on line 135 of your return.
goto the top left hand box at www.centa.com.  Click on Tax Guide and then on
the Capital Gains section for a better idea about how capital gains and
straight income are differentiated.
================
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