Selling a Presale After Completion: What You Actually Net (BC 2026)
By Uzair Muhammad · Published · Updated
On a $520,000 Surrey presale, the break-even resale price is about $577,300. Here is the exit math: ACB, selling costs and 2026 capital gains tax.
Selling a presale condo after completion for more than you paid can still lose you money. On a $520,000 Surrey 1-bed, the break-even sale price is about $577,300, roughly 11% above your contract price, once GST, property transfer tax and selling costs are counted. Know that number before you sign, not after you close.
Most investors model a presale exit with one line: sale price minus purchase price. That skips the three things the CRA and your realtor will not skip: your adjusted cost base (ACB), your selling costs, and the 50% capital gains inclusion rate. With the Fraser Valley apartment benchmark at $466,100 in August 2026 (down 8.9% year-over-year, per FVREB) and the Bank of Canada holding at 2.25%, flat-to-lower prices make this math matter more, not less.
Your real cost base is higher than your contract price
Your ACB is what the CRA treats as your cost. For a presale held as a rental, it is the contract price plus the closing costs you paid on completion. Investors above the $450,000 NRRP rebate cliff get no GST rebate, so the 5% goes straight into the base.
| Item (example $520,000 Surrey 1-bed) | Amount |
|---|---|
| Contract price | $520,000 |
| GST at 5% (no rebate for this investor) | $26,000 |
| Property transfer tax (1% to $200K, 2% above) | $8,400 |
| Legal and completion costs (estimate) | $1,800 |
| Adjusted cost base | $556,200 |
What it costs to sell
A resale condo carries no GST for the next buyer, but you still pay commission (plus 5% GST on that commission) and a lawyer. We use a conventional BC split of 7% on the first $100,000 and 2.5% on the rest, then add legal fees of about $1,200. Commission is negotiable and every deal differs, so treat these as illustrative figures.
The exit math at four sale prices
| Sale price | Selling costs | Gain or loss vs. $556,200 ACB | Tax at ~40% marginal |
|---|---|---|---|
| $540,000 | $20,100 | Loss of $36,300 | $0 (loss is capital-only) |
| $577,300 (break-even) | $21,300 | About $0 | $0 |
| $600,000 | $21,675 | Gain of $22,125 | $4,425 |
| $640,000 | $22,725 | Gain of $61,075 | $12,215 |
Read the first row twice. Selling at $540,000 is $20,000 above the contract price, yet it is a $36,300 loss against your real cost base. Only 50% of a capital loss is allowable, and it can only offset capital gains, not your salary or rental income.
The tax rules that decide your net
The 50% inclusion rate
The CRA taxes half of a capital gain at your marginal rate. The proposed increase to two-thirds was cancelled, so the rate is still 50% in 2026. On the $600,000 sale, $11,062 is taxable and the tax is about $4,425 at a 40% marginal rate. Your rate depends on your total income.
The holding-period traps
Sell within 365 days of acquiring and the federal anti-flipping rule can turn the gain into 100% taxable business income. BC's flipping tax can also apply inside 730 days. See our breakdown in the BC home flipping tax guide and confirm your exact dates with an accountant.
Watch the depreciation trap. If you claimed capital cost allowance (CCA) while renting, that claim comes back as fully taxable recapture on sale, not at the 50% rate. As we explain in our investor write-offs breakdown, CCA often saves nothing in a negative cash-flow year, so skipping it can be the better call.
What to decide before you sign, not at completion
- Calculate your break-even sale price using your real ACB, GST included.
- Ask what price resale units in the same area are actually closing at today, not what developers are listing at.
- Stress-test two exits: sell at completion, or hold and rent. Our completion cash-flow math shows what holding costs each month.
- Budget the tax bill on any gain and set aside the cash.
- Skip the deal if the only way it works is a price rise you cannot back with comparable sales.
This is the buyer-advocacy point developer marketing never makes: the presentation-centre brochure shows projected appreciation, never your break-even. Our team represents buyers only, so we run this exit math with you before you sign. If you want to compare actual projects with it, start with presale condos in Surrey.
Quick answers
Is there GST when I resell a completed condo? No. A used condo sale is GST-exempt for the next buyer. The 5% GST you paid on completion stays in your cost base.
What if I move in and live there? The principal residence exemption may remove the gain, but the flipping rules and your rental history still matter. Get tax advice for your exact dates.
Can a capital loss reduce my other income? No. Allowable capital losses can be carried back three years or forward indefinitely, but only against capital gains.
The Bottom Line
Your exit price is only as good as your break-even. Add GST, property transfer tax and selling costs to your contract price, then ask whether the market realistically gets there. This is general information, not tax advice; confirm your numbers with a CPA. Want your own break-even run on a project you are considering? Book a free 15-min call.
Sources: CRA, capital gains; gov.bc.ca, home flipping tax; FVREB statistics.