An accountant for real estate agents and brokerages.
A real estate accountant who works with agents every day, not a generalist who sees one realtor's tax return a year. We handle tax, bookkeeping and Personal Real Estate Corporation planning for Ontario real estate professionals, from solo agents in Whitby, Oshawa and Ajax to teams and brokerages across the GTA, all from a chartered professional accountant (CPA, CA) with 20+ years working with real estate clients since 2009.
Real estate accounting is its own animal.
Most general accountants treat a real estate agent like any other small business. It isn't. Your commission income is fully taxable for HST, which is the opposite of how many professionals work, so you have to register, charge it and remit it. Your income swings between feast-and-famine months and needs a system that holds up. And your vehicle, home office and marketing claims are exactly the deductions the CRA expects you to document, so they need detailed support to hold.
So yes, real estate professionals genuinely need an accountant for real estate agents, not a generalist learning on your file. We've handled tax, bookkeeping and PREC planning for realtors across Durham Region and the GTA through every market cycle since 2009. The patterns in the real estate industry are familiar, the mistakes are predictable, and the tax planning wins are real.
Real estate accounting services, the full picture.
One firm for tax, bookkeeping, payroll and advisory. One point of contact, one consistent set of advice, and nothing falls between your accountant and your bookkeeper because they are the same person, so you can focus on selling.
Personal and corporate tax
Your personal T1 and your PREC's T2 tax return filed together and planned together, with the salary-versus-dividend split set so it actually makes sense for your numbers.
PREC setup and tax planning
Whether to incorporate a Personal Real Estate Corporation, when, and how to use the structure effectively once you do. We model the real estate tax both ways before you commit.
Commission income tracking
Bookkeeping reconciled to your brokerage statements every month, so year-end is a quick close and not a scramble, with financial statements that show the real cash flow of your business.
HST on commissions
Registration, filings and remittances handled, with the HST classed correctly on every transaction so you are not under-tracking what you collect and owing big later.
Vehicle and home office
A CRA-defensible logbook and a home office calculation done on the right basis, so you claim what you are entitled to as a realtor and nothing that invites a review.
Brokerage and team support
For team leads and brokerage owners, accounting services and payroll for buyer agents, listing agents and admin staff, coordinated with your broker of record.
Four things most accountants miss.
These are the questions that come up almost every time a real estate agent changes accountants. Worth knowing whether or not we end up working together.
HST on commission is not optional
Commission income is a taxable supply, so once you are a registrant you charge 13% HST on it in Ontario and remit it to the CRA. This is the reverse of many regulated professionals whose services are exempt. Registration is mandatory once your taxable supplies pass $30,000 over four consecutive calendar quarters, which happens fast for a working realtor. The mistake we see is agents under-tracking the HST they collect and then owing a large balance at remittance time. The obligation is yours, not the brokerage's.
Who can own shares of your PREC
A Personal Real Estate Corporation has narrow ownership rules under TRESA and RECO. All of the equity shares, which are the voting and controlling shares, must be owned by you, the registered agent or broker, who is also the sole director and officer. Only non-equity, non-voting shares can be held by family, meaning your spouse, children or parents, or a trust for your minor children. Those share rules, not a special real estate version of the CRA's TOSI rules, are what really narrow income-splitting. TOSI then applies to dividends paid to family members the same way it applies to any private corporation, so it is worth a real conversation before you set up the structure.
Vehicle and home office need documentation
Vehicle and home office are two of the most common review areas for self-employed Canadians, and realtors are exposed because the deductions are usually large. The CRA expects detailed support. A logbook that records total and business kilometres, with odometer readings at the start and end of the year, and a home office calculation done on a reasonable square-footage basis, are non-negotiable. Set up properly once, they are easy to keep and they hold up to scrutiny.
Marketing, staging, gifts and meals all have rules
Closing gifts to clients are deductible, but with limits. Meals are generally 50%. Staging is deductible if you can tie it to a specific listing. Generic 'business development' lumped into one bucket is asking for a reassessment. We sort out the categorization, keep the structure clean, and document it so the deductions hold.
Three kinds of real estate clients.
Solo realtors
Single agents earning commission income. We handle the personal tax return, register and run HST, keep the bookkeeping current, and advise on whether and when to set up a PREC.
Real estate teams
Team leads paying buyer agents, listing agents and admin staff. We sort out the contractor-versus-employee question, run payroll, and keep the real estate accounting consistent across the team.
Brokerages
Independent brokerages with multiple agents and trust accounting requirements. We coordinate with your broker of record and your bank, and handle the tax services and financial statements for the business.
You'll work directly with Elena.
EK CPA Pro is owner-operated. When you call, you're talking to the CPA, CA who's actually doing the work, not a junior who hands the file off at year-end. Elena has been working with owner-operated businesses across Durham Region since 2009, and is a graduate of CPA Canada's In-Depth Tax Program.
Questions realtors ask first.
Do real estate agents really need a specialized accountant?
Most do. A realtor charges HST on commission, has income that swings month to month, and runs vehicle, home office and marketing claims the CRA expects you to document. A general accountant can miss all of it. A specialized real estate accountant has seen the patterns before, which usually means cleaner books, lower tax and fewer surprises. That is the whole reason real estate accounting exists as its own thing.
Who pays tax on realtor commission?
You do, as the agent earning it. Your commission is self-employment income, so it goes on your personal tax return (or your PREC's return if you have incorporated) and you pay income tax on the profit after expenses. On top of that, the commission is a taxable supply, so once you are registered you also charge and remit 13% HST in Ontario. The brokerage may help with the mechanics, but the income and the HST obligation are yours.
Should I form a PREC?
Usually once your gross commissions comfortably clear what you need to live on, because a Personal Real Estate Corporation gives you a much lower tax rate on the income you leave in the company. But it depends on your debt, your spouse's income and what you are saving for, and there are share-ownership rules to follow. We model both options with your real numbers before you decide.
Do I need to charge HST on my commissions?
Yes. Commission income is a taxable supply, you collect 13% in Ontario, and you remit it to the CRA. Registration is mandatory once your taxable supplies pass $30,000 over four consecutive calendar quarters, which happens fast. The brokerage typically helps with the mechanics but the obligation is yours.
What can I deduct as a real estate agent?
Brokerage fees, board and association dues, MLS fees, marketing, vehicle (with a logbook), home office, professional development, closing gifts (with limits) and a portion of meals. The trick is documenting it properly. We go through the list in the first meeting and tell you what holds up with the CRA.
How do you bill?
Fixed-fee, quoted up front. You will know the cost of your year-end, your tax return and your monthly bookkeeping before we start. No surprise invoices, no hourly billing.