Real Estate Agents
Bookkeeping and tax support designed for Canadian real estate agents.
Commission-based income creates a structure that differs significantly from salaried employment. Deals close at irregular intervals, brokerage splits affect reported revenue, and GST/HST obligations apply once revenue crosses required thresholds.
Teplov CPA provides bookkeeping, tax compliance, and tax planning for real estate agents across Canada, whether you operate as a sole proprietor or through a professional corporation.
Common Situations We See
Real estate agents typically contact us in one of the following situations:
– Commission income arrives deal by deal and varies throughout the year.
– Brokerage splits and referral fees are not being tracked clearly.
– Vehicle use is primarily business-related but no compliant mileage log is maintained.
– GST/HST registration obligations are unclear.
– Marketing, client gifts, and staging costs are not categorized properly.
– Incorporation has been discussed but no financial analysis has been completed.
– Tax season feels reactive rather than organized.
Our role is to provide structured bookkeeping, accurate compliance, and informed planning based on your income level, province, and long-term objectives.
Our Services for Real Estate Agents
Monthly Bookkeeping
Accurate records throughout the year support proper GST/HST reporting and installment planning.
We provide:
– Monthly transaction categorization
– Bank and credit card reconciliations
– Commission tracking and brokerage split reconciliation
– Expense categorization and monitoring
– GST/HST tracking and periodic filings
– Financial statements including profit and loss and balance sheet
– Year-end file preparation to support tax filing
Bookkeeping is delivered using Xero or QuickBooks Online, configured specifically for real estate commission income.
Tax Compliance
We prepare and file returns accurately and on time, with a CPA who understands how commission income must be reported.
Services include:
– T1 personal income tax returns
– T2125 self-employment income reporting
– T2 corporate tax returns where applicable
– GST/HST registration and periodic filings
– Quarterly installment calculations
– CRA correspondence support related to prepared filings
Real estate commissions are taxable supplies. Once revenue exceeds $30,000 in a rolling 12-month period, GST/HST registration is required. Registration obligations arise when the threshold is crossed, not at year end. Proper setup ensures GST/HST is collected and remitted correctly while input tax credits are claimed on eligible business expenses.
Commission income must be reported on a gross basis. Brokerage splits are recorded as deductible business expenses. Reporting only the net amount is a common error that affects GST/HST and installment calculations.
Tax Planning for Real Estate Agents
Tax planning focuses on income variability, expense structure, and long-term strategy.
Incorporation Analysis
Incorporation may be appropriate if:
– Net commission income is consistently strong
– You do not require all earnings personally in the same year
– You wish to retain earnings within the corporation
We evaluate your historical income, projected earnings, province of residence, and personal cash flow requirements. You receive a clear comparison of remaining a sole proprietor versus incorporating.
Vehicle Expense Strategy
Vehicle expenses are often a significant deduction. CRA requires a contemporaneous mileage log documenting business use. We review mileage tracking methods and ensure calculations are compliant.
Marketing and Client Expense Treatment
Advertising, staging contributions, photography, CRM subscriptions, client gifts, and meals have specific deductibility rules. Some categories are fully deductible, while others are partially deductible. Proper categorization ensures claims are accurate and defensible.
Installment Planning
If tax owing exceeded $3,000 in a prior year, quarterly installments may apply. Commission-based income makes planning more complex. We calculate installment obligations before deadlines to reduce interest exposure.
Frequently Asked Questions
Gross commissions earned before brokerage deductions are reported as revenue. Brokerage splits and referral fees paid are recorded as deductible business expenses. This structure affects GST/HST and installment calculations and must be reported correctly.
Registration is required once revenue exceeds $30,000 in a rolling 12-month period. The obligation begins when the threshold is crossed, not at year end.
CRA requires a contemporaneous record that includes the date, starting point, destination, business purpose, and odometer readings. Business kilometers divided by total annual kilometers determine the deductible percentage.
2025 Tax Return
The filing deadline for self-employed Canadians is June 15, 2026. Any balance owing is still due April 30, 2026.
We are currently accepting new real estate agent clients for the 2025 tax year.
Get started
Email contact@teplov.ca or use the contact form with a brief description of your situation, including:
– Approximate annual income
– Whether you are incorporated
– Whether you have US clients
– What you are trying to resolve
We typically respond within one business day.