Realtor & PREC Tax 

Specialized Tax Planning and Compliance for Ontario Real Estate Professionals in Toronto, Scarborough, Markham, Mississauga, Ajax, Pickering, Whitby, Oshawa, Oakville, Hamilton and across Ontario

As a real estate agent or broker in Ontario, your tax situation is unique—especially if you’ve incorporated under a Personal Real Estate Corporation (PREC). From commissions, deductible expenses, and GST/HST compliance, managing your finances correctly is crucial to keeping more of your hard-earned income.

Our Real Estate Tax Accountants provide tailored Realtor & PREC tax and bookkeeping solutions for real estate agents, brokers, and PREC owners, ensuring full CRA compliance while maximizing your tax advantages.

Who Needs to File Realtor and PREC Taxes?

You are required to file annual income tax returns if you are:

  • A licensed realtor earning commissions as a sole proprietor
  • Operating as a Personal Real Estate Corporation (PREC) under RECO rules
  • Earning business income through brokerage activities
  • Collecting GST/HST on commissions (typically required if earnings exceed $30,000/year)
  • Incurring deductible business expenses related to marketing, vehicle use, home office, staging, etc.

Our Realtor & PREC Tax Services

Our Real Estate Accountants offer end-to-end support for real estate agents and brokers at every stage of their business:

For Sole Proprietor Realtors:

  • Preparation of T1 Personal Tax Return with T2125 (Statement of Business Activities)
  • Income and expense tracking customized for real estate
  • GST/HST registration and return filing
  • Deduction optimization (vehicle, cell phone, meals, staging, signage, etc.)
  • Tax instalment reminders and planning

For Personal Real Estate Corporations (PREC):

  • T2 Corporate Tax Return filing
  • Remote Bookkeeping with CRA-compliant record keeping
  • Corporate year-end planning and financial statements
  • Shareholder remuneration strategy: salary vs. dividends
  • Tax deferral planning to optimize corporate tax benefits
  • GST/HST collection, remittance, and ITC claims
  • Payroll and T4 preparation
  • Ongoing compliance with RECO, CRA, and Ontario Business Registry

Filing Deadlines, Tax Rates & Penalties

🔹 Filing Deadlines:

  • T1 (for unincorporated realtors): Due June 15, but balance owing is due April 30
  • T2 (for PREC owners): Due six months after your corporation’s fiscal year-end
  • GST/HST returns: Quarterly or annually, depending on your registration

🔹 Tax Rates (2025):

Personal (Federal + Ontario):

  • Starts at ~20% and can rise to 53.53% for high-income earners

Corporate (PREC – CCPC):

  • Small business rate: 12.2% (combined federal and Ontario, on first $500,000 of active income)
  • General corporate rate: 26.5% for income above the small business limit

CRA – Current corporate tax rates

🔹 Penalties for Late Filing:

  • T1: 5% of balance owing + 1% per month (up to 12 months)
  • T2: 5% of balance owing + 1% per month (up to 12 months) 
  • T2 repeated late filing: Penalties double to 10% plus 2% per month for the second offense within 3 years
  • GST/HST: Late filing penalties + compounded daily interest

Why Choose Us for Realtor & PREC Tax Services?

✅ Understanding of CRA rules, RECO guidelines and PREC structures

✅ Strategic salary/dividend planning for tax efficiency

✅ End-to-end support: GST/HST, payroll, bookkeeping, audits

✅ Customized solutions for both new and experienced agents

Frequently Asked Questions (FAQs)

1. Should I incorporate as a realtor in Ontario?

If your income exceeds ~$100,000 annually, a PREC can offer tax deferral, income splitting (under certain rules), and limited liability. We’ll assess if it’s the right move for you.

2. Do I need to charge HST on commissions?

Yes, if you earn over $30,000/year from commissions. You must register for GST/HST and remit it on your taxable services. We’ll handle registration and filings for you.

3. Can I deduct my car, phone, and home office?

Absolutely. These are common deductions, but documentation and usage calculations are critical. We’ll ensure they’re maximized and CRA-compliant.

4. What’s the tax advantage of a PREC?

With a PREC, income can be taxed at lower corporate rates (as low as 12.2%) and retained within the company until needed, allowing for tax deferral and investment opportunities.

5. What happens if I miss my GST or income tax deadlines?

You may face penalties, interest, and in the case of corporations, risk losing your small business deduction. We’ll help you stay on top of every deadline.

Book a Free Consultation with our Real Estate Tax Accountant Scarborough

Whether you’re just starting your real estate career or already incorporated as a PREC, we’ll ensure your tax affairs are optimized and CRA-compliant.
📧 Email us: info@maqcpa.ca
📞 Call us: (416) 901-4126