Real Estate Agents
Accounting for Real Estate
Tax and Accounting for Real Estate Professionals
Real estate agents who earn over $30,000 in annual commissions must register for GST/HST and charge it on their services. This also allows you to claim Input Tax Credits (ITCs) on your business expenses.
Real Estate Tax Rules
Key Tax Obligations for Real Estate Agents
01
Commission Income is Self-Employment Income
All real estate commissions must be reported as self-employment PREC income on your personal tax return, as taxes are not automatically withheld.
02
GST/HST Registration After $30,000
Agents earning over $30,000 annually must register for GST/HST and charge it on commissions — and can claim ITCs on business expenses.
03
CPP Contributions Are Required
As self-employed, you pay both the employee and employer portions of CPP on your net self-employment income.
04
Vehicle Expenses Are a Major Deduction
The business portion of your vehicle costs — fuel, insurance, maintenance — is deductible based on your business use percentage.
05
Home Office May Be Deductible
If you work from home, a portion of your home expenses — utilities, internet, rent/mortgage interest — may be deductible.
06
Marketing & MLS Fees Are Deductible
Agent Deductions
Eligible Deductions for Real Estate Agents
Vehicle Expenses
Fuel, insurance, maintenance, and depreciation (CCA) based on the percentage of business use of your vehicle.
Marketing & Advertising
Online ads, print materials, signage, social media, and all promotional costs related to your real estate business.
MLS & Board Fees
Real estate board membership fees, MLS access fees, and licensing costs are fully deductible.
Home Office Expenses
A portion of your home utilities, internet, and occupancy costs if you use a dedicated workspace at home.
Professional Development
Courses, seminars, and training related to real estate are deductible as business education expenses.
Technology & Software
Phone, laptop, CRM software, and other technology tools used for your real estate business are deductible.
Agent Records
Records Every Real Estate Agent Must Maintain
Total Commission Income from All Transactions
All Business Expense Receipts
Vehicle Mileage Log for Business Trips
GST/HST Number & Filing Records
ADL for Real Estate Agents
Accounting Services for Real Estate Agents
GST/HST Filings
We register and file your GST/HST returns — claiming every eligible input tax credit on business expenses.
Self-Employed Tax Filing
We prepare your personal tax return — reporting all commission income and claiming every eligible deduction.
Bookkeeping
We track and organize all your income and expenses throughout the year — CRA-ready at all times.
Corporate Taxes
If your real estate business is incorporated, we prepare and file your annual T2 corporate tax return.
CRA Audits / Reviews
Received a CRA notice? We represent you professionally and handle all communication on your behalf.