CRA Launches Investigation into "Shadow Flipping" of Toronto Condos
CRA Launches Investigation into "Shadow Flipping" of Toronto Condos This blog is brought to you by LawyerSelect.ca - Free Personalized Lawyer Referral Service Pretty much everybody knows about the booming real estate markets in Toronto and Vancouver. Fear of an overly inflated market is everywhere, and in response, governments at all levels are taking action in one form or another. The latest government agency to throw their hat into the regulatory ring is none other than the Canada Revenue Agency, or CRA for short. They’re particularly interested in scrutinizing the practice known as “shadow flipping” or “assignment sales.” Essentially, this is a real estate sales technique that involves purchasing pre-construction condos directly from a developer, and a subsequent sale to another buyer at a higher price, even before the seller takes possession of the condo. What happens is the first purchaser of the condo transfers or sells his/her interest in the real prope...