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4 Deciding Factors to Help You Choose Between Paying Yourself a Salary or Dividend from PREC
Have you, as a realtor or real estate agent, found yourself with the question, “Should I pay myself a salary or dividend from PREC?” Well, you’re not alone. Many of my realtor clients have been asking which one is better suited to them. Although it’s not a simple one-answer-fits-all kind of question, I may be […]
How to Prepare for the Rising Interest Rate
As realtors, any fluctuation with the Interest Rate can seem very worrisome, wouldn’t you agree? Let’s begin with looking at the the recent realtionship between the ineterest rate and our government. Rising Interest Rate & Canadian Government In the past two years, the Canadian government has done two things to help fellow Canadians get through […]
How Realtors can Calculate Income Tax Payable on Commission Income
PAYABLE ON COMMISSION INCOME Before you learn how to calculate your income tax, you must first understand how the Canadian tax system works. The Canadian personal income tax system is a progressive tax system. This means that the more you make, the more you get taxed on. The chart below shows the marginal tax rates […]
Harmonized Sales Tax: Calculate HST with The Quick Method
Harmonized Sales Tax (HST) is a combination of federal and provincial sales taxes on goods and services in Canada. Last week, we spoke about how realtors could deduct commission rebate, and some of you asked me about calculating your HST in the first place. So let’s get right into it… As a Realtor, the services […]
How to Deduct Realtor Commission Rebate the Right Way
If you have worked in the real estate industry for a while, you probably know how realtor commission rebates work. However, if you are new to the field, you may be wondering how this rebate works and if you could avail it. How does realtor commission work in Canada? Realtor commission is the payment received […]
What is a Realtor’s tax? Self employed vs. Employee
A Realtor’s tax is often determined by his/her employment category. Realtors, like many other professionals, can either own their businesses or be employees. The language used in the legislation governing real estate trading activities can be quite confusing. It sometimes refers to the self-employed realtors as “employees.” However, self-employed and employee realtors have two very […]
How To Qualify For Financing in PREC?
Realtors often ask, “how do I qualify for financing in PREC?” If you have been in the real estate industry for a while, you have probably heard, getting mortgages in a corporation is extremely difficult. Well… let’s clear that misconception! Some rumors associated with qualifying for financing in PREC Banks don’t like corporation when it […]
6 Common Realtor Tax Related Questions Asked By Over 200 Realtors
Are real estate agent taxes what keep you up at night? Are you a realtor worried about your tax implications? You are not alone! On a coaching call with over 200 realtors a while backI was asked these golden questions. I find these realtor tax questions ever-relevant, as more and more realtors and real estate […]
Should Realtors Incorporate?
Did you know that realtors weren’t allowed to incorporate and receive commissions through corporations until just two years ago? In March 2020, a couple of local MPPs brought a bill to Parliament that passed and incorporation for realtors became an opportunity. An opportunity for realtors to build their retirement fund using a real estate portfolio […]
Can You Deduct Travel Expenses in Canada?
“Can I deduct travel expenses, and if yes, then how?”, Realtors and small business owners often ask this question. Generally speaking, you can deduct expenses that you incur to earn business income/rental income, subject to a bunch of exceptions, as specified in the Income Tax Act. Whether you are eligible to deduct a trip, you […]