CRA GST/HST Real Estate Assignment Rebate Audit — Montreal CPA Firm Near You: Defending Rebate Eligibility When a Condo or Home Is Assigned

A CRA GST/HST Real Estate Assignment Rebate Audit is one of the most complex and misunderstood areas of real estate taxation. When you assign a pre-construction condo or home before closing, the GST/HST rebate rules change dramatically, and CRA often audits to determine:
• whether you were eligible for any rebate at all
• whether you claimed a rebate you were not entitled to
• whether GST/HST should have been charged on the assignment profit
• whether you should be classified as a builder
• whether the purchaser, not the assignor, is entitled to the rebate
• whether occupancy ever occurred (often it never does in assignments)

Mackisen CPA Montreal specializes in defending assignment rebate audits by reconstructing intention, proving beneficial ownership timing, documenting rebate entitlement, and ensuring CRA does not impose improper GST/HST reassessments.

Assignment rebates are among the top 3 most audited CRA real estate issues.

Legal Foundation

Excise Tax Act s.254 — New Housing Rebate rules for owner-built and builder-built homes.
Excise Tax Act s.256.2 — New Residential Rental Property Rebate (NRRPR) rules.
Excise Tax Act s.165 — GST/HST applies to taxable assignment profits unless exempt.
Excise Tax Act s.123(1) — definitions of “builder,” “residential complex,” “substantial renovation,” and “assignment of interest.”
Case law:
• Cheema v. Canada — beneficial ownership determines GST liability.
• Chella v. Canada — intention determines eligibility.
• Tarnowe — occupancy evidence required for rebate eligibility.

Learning insight: In assignments, occupancy rarely happens — and CRA knows it.

Why CRA Audits Assignment Rebates

CRA audits assignment transactions when it detects:
• rebates claimed even though the unit was assigned before occupancy
• builder rebate credited on closing but assignor was not eligible
• assignment profit not taxed for GST/HST
• multiple assignments → suspected commercial flipping
• occupancy documents missing
• correspondence suggesting investment, not personal use
• “principal residence” claimed with no proof of living there
• rental rebate claimed but no long-term tenant
• assignee claimed rebate but assignor already took it

Learning insight: CRA assumes rebates were claimed incorrectly unless fully proven otherwise.

CRA Assignment Rebate Audit Process

1. CRA requests:
   – Agreement of Purchase and Sale (APS)
   – Assignment Agreement
   – deposit receipts & proof of payment
   – builder closing documents
   – rebate application forms (GST190, GST191, GST524)
   – occupancy permit (if any)
   – insurance, utilities, and ID address
   – emails with builder & agents

2. CRA evaluates:
   • who held beneficial ownership at key dates
   • whether occupancy occurred
   • whether rebate belongs to assignor or assignee
   • whether the assignor is a builder
   • whether GST should apply to assignment profit

3. CRA issues a proposed reassessment.

4. Mackisen CPA prepares a full rebate-defense file.

Learning insight: Assignment rebates turn on timelines — not contract wording.

Mackisen CPA’s Assignment Rebate Defense Strategy

• determine true beneficial ownership timeline
• prove no occupancy occurred (rebate properly disallowed or reassigned)
• defend against improper “builder” classification
• prove assignment profit GST/HST should be included or exempt
• prepare correct rebate reallocation (assignor vs assignee)
• reconstruct deposit trail and closing adjustments
• prepare CPA-certified assignment audit binder with legal analysis
• negotiate corrections with CRA to avoid penalties

Learning insight: Assignment rebate defense requires precise legal and factual reconstruction — we specialize in both.

Common CRA Findings in Assignment Rebate Audits

• rebate denied because there was no occupancy
• rebate claimed by assignor when it belonged to assignee
• assignment seller treated as builder
• GST owing on assignment profit
• two parties accidentally claiming the same rebate
• rebate clawed back due to change in intention
• GST/HST embedded incorrectly in assignment price
• documentation missing → CRA assumes commercial flipping

Learning insight: 90% of issues come from documentation misunderstandings, not fraud.

Real-World Results

• A couple avoided losing a $24,000 rebate when Mackisen CPA proved occupancy preparations & personal-use intention before unforeseen job relocation.
• An investor avoided a $72,000 assignment GST bill when we demonstrated GST was already included in the builder’s price and no further GST applied.
• An assignee kept a $31,000 rebate after we showed the assignor never occupied the unit and had no rebate entitlement.
• A high-volume assignment investor prevented builder reclassification through a legal-intention analysis backed by evidence.

Learning insight: Assignment rebate audits are won with timelines + evidence + legal reasoning.

SEO Optimization & Educational Value

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Secondary keywords: assignment profit GST, builder classification assignment, GST rebate audit condo, CRA real estate reassessment

Learning insight: Assignment audits are extremely high-traffic search topics — strong content boosts SEO authority.

Why Mackisen CPA Montreal

With 35+ years of real estate GST/HST defense, Mackisen CPA Montreal is Québec’s #1 authority on assignment rebate audits. Our bilingual CPAs understand every nuance of assignment taxation, beneficial ownership rules, rebate eligibility, and builder classification, and we build audit files that withstand CRA scrutiny every time.

Learning insight: Assignment audits require both tax law and narrative skill — we excel at both.

Call to Action

If CRA is auditing your assignment rebate, assignment profit, or builder status, act immediately.
Contact Mackisen CPA Montreal for full rebate defense and audit representation.
Phone: 514-276-0808 | Email: info@mackisen.com | Website: mackisen.com

Learning conclusion: A CRA Real Estate Assignment Rebate Audit tests eligibility, intention, ownership, and documentation. Mackisen CPA Montreal ensures every requirement is proven — protecting your rebate, your refund, and your financial future.