Who We Serve
Real Estate Agents and Salespersons
Bookkeeping and tax support designed for Canadian real estate agents and salespersons. Commission income, brokerage splits, GST/HST obligations, and variable deal timing create a tax structure that requires accurate tracking throughout the year. We work with registered salespersons and brokers operating as sole proprietors and corporations.
Common situations we see
- Commission timing that does not match the calendar year due to delayed closings
- Brokerage commission splits that require accurate gross-basis reporting
- Vehicle use for showings and client meetings without a compliant mileage log
- GST/HST registration obligations that are unclear or unaddressed
- Referral fees paid and received that need proper documentation
- Tax season handled reactively without year-round structure
We provide structure, documentation practices, and professional judgment based on your volume, income pattern, and compliance obligations.
Monthly Bookkeeping
Organized books every month with commission income tracked, GST/HST managed, and marketing expenses documented before tax season.
- Monthly transaction categorization for all bank and credit accounts
- Bank and credit card reconciliations
- Commission tracking reconciled against T4As and brokerage statements
- Marketing, advertising, and client expense monitoring
- GST/HST tracking and input tax credit monitoring
- Monthly financial statements
- Year-end file preparation for tax filing
- Setup and maintenance in Xero or QuickBooks Online
Tax Compliance
Returns prepared and filed by a CPA who understands how real estate commission income is structured and how brokerage splits are reported.
- T1 personal income tax return with T2125 self-employment schedule
- T2125 reconciled against T4As and commission statements on a gross basis
- Referral fee documentation both paid and received
- Full marketing and advertising expense schedule
- T2 corporate tax return if incorporated
- GST/HST registration and periodic filings
- Instalment calculations based on current-year income
- CRA correspondence support
Commission income is reported on a gross basis on T2125. Brokerage splits are recorded as deductible business expenses. GST/HST registration is required once total revenues from taxable supplies exceed $30,000 in a rolling 12-month period.
Tax Planning
Planning for real estate agents accounts for commission variability, deal timing, and the structure decisions that affect long-term tax outcomes.
- Incorporation analysis based on income level, cash flow needs, and provincial rates
- Vehicle expense strategy and mileage log review
- Marketing and client entertainment expense treatment
- Instalment planning for variable commission income
Common questions
- Are real estate commissions subject to GST/HST?
- Real estate commissions are generally taxable supplies under the Excise Tax Act. Once your total revenue from taxable supplies exceeds $30,000 in a rolling 12-month period, registration is required.
- How do I report commission income split with my brokerage?
- Commission income is reported on a gross basis on T2125. The portion paid to your brokerage is recorded as a deductible business expense, not a reduction of gross revenue.
- What records do I need for vehicle deductions?
- CRA requires a contemporaneous mileage log. Entries must include the date, destination, business purpose, and kilometres driven for each business trip. Logs reconstructed after the fact may be challenged on audit.
- What happens in a high-commission year?
- A high-income year may trigger instalment requirements for the following year. Planning during the year, rather than after filing, allows for more accurate instalment calculations and reduces interest exposure.
Work with us
Registered real estate salesperson or broker? Use the contact form to describe your situation and we will follow up directly.
Contact Teplov CPA