The formula was built for American single-family houses. It ignores both flipping taxes and property transfer tax, and it rejects deals that actually work.
Property transfer tax, holding costs, commission and two flipping taxes. On a real deal, 32,400 dollars leaves a 118,500 dollar spread before anyone is paid.
The province names presale contracts explicitly. The 730-day clock runs from the contract date, not completion, which concentrates the risk in early assignments.
The CRA says it remains a question of fact. The 365-day rule is a floor, not a ceiling, and misreading it is a six-figure mistake.