The gains should be taxed, and the losses should be deducted.  My only issue with this is why does it take so long for the CRA to do anything?  Assignments need to be tracked by the government.  At this point, if you go after people for this, they will lawyer up and it will take years to recoup tax dollars.    When I bought my condo, I heard that assignments were possible but I also knew that this income should be taxed.  I also knew that people were not necessarily declaring this taxable income.  This was 12 years ago.