You Close Deals.
We Close Your Books.
Realtors, property investors, and rental property owners have some of the most complex tax situations in Canada. Commission income, rental income, GST/HST on commissions, capital gains — we track it all and keep you CRA-compliant year-round.
What Real Estate Professionals Deal With
Commission Income Timing
Commissions can come in irregularly — a great month followed by a slow one. Tracking net commissions after brokerage splits and deducting marketing expenses requires careful recordkeeping all year long.
CCA Recapture on Rental Property Sales
When you sell a rental property you've been depreciating, the CRA recaptures the CCA you deducted over the years and taxes it as 100% regular income — not at the 50% capital gains inclusion rate. This catches many landlords off guard: they plan for a capital gain and get hit with a much larger recapture bill. Each rental property is also its own income and expense center, tracked separately on the T776 schedule.
Capital Gains vs. Recaptured CCA: Two Different Tax Rates on One Sale
The 2023 Residential Property Flipping Rule treats gains on properties held under 365 days as fully taxable business income. But even on longer holds, the tax picture is split: any gain above your original cost is a capital gain (50% inclusion rate), while any depreciation you claimed and are now recapturing is taxed at 100% as regular income. Getting these two buckets wrong on your return means the CRA will recalculate — and the difference is significant.
Services for Real Estate Professionals
Monthly Bookkeeping
Commission income, brokerage splits, and all business expenses tracked monthly. Rental income and expenses tracked per property on separate schedules.
GST/HST Filings
GST/HST applies to commissions. We handle registration, collect what's owed, claim input tax credits, and file on time. No missed deadlines.
Annual Tax Returns
T1 with self-employment schedule (T2125) for commission income and T776 schedule for each rental property. Every deduction documented.
Year-End Support
Year-end close of all business and rental accounts. Working papers package ready for your CPA — especially important if you hold properties corporately.
Payroll
If you've incorporated and employ an assistant or property manager, we handle payroll and remittances correctly every pay period.
CRA Support
Real estate and rental income are high-audit-risk areas. If the CRA contacts you, we respond on your behalf and provide the documentation needed to resolve it.
Real Estate Questions — Answered
Yes. Real estate commissions are taxable supplies and GST/HST must be charged. Once your total commissions exceed $30,000 annually, registration is mandatory. We handle registration, return preparation, and ensure the correct amounts are remitted on time.
Rental income is reported on a T776 schedule as part of your T1 personal return (or T2 if held corporately). You can deduct eligible expenses including mortgage interest, property taxes, insurance, repairs, property management fees, and depreciation (CCA). We track each property separately so your return is accurate and defensible.
Common deductions include vehicle expenses (mileage log required), marketing and advertising, home office, MLS and board fees, professional development, staging costs, phone and internet, and errors & omissions insurance. We capture all of these throughout the year so nothing is left on the table at filing time.
Under the Residential Property Flipping Rule (in force since January 1, 2023), if you sell a residential property you owned for less than 365 days, the gain is treated as business income — fully taxable, not a capital gain. There are exceptions for life events like divorce, death, disability, or job relocation. We ensure your transactions are classified correctly from the start.
Useful Articles for Real Estate Professionals
Sole Proprietor vs. Corporation: Which Is Better for You?
Tax rates, liability, costs, and when the $80–100K income threshold makes incorporation worth it.
Home Office Deduction Canada: What You Can Actually Claim
Two eligibility conditions, the square footage method, and the key difference between sole proprietors and corporations.
Real Estate Is Complicated Enough.
Your Books Don't Have to Be.
Tell us about your real estate practice and we'll send you a custom, no-obligation quote within 1 business day.