Keller Williams Realty

GOOD NEWS – The Real Estate Council of Ontario (RECO) is now allowing Real Estate Agents to incorporate!

Personal Real Estate Corporation (PREC)

Incorporation for Real Estate Agents in Ontario 

Realtors in Ontario are now able to incorporate themselves with Bill 104, the Tax Fairness for Realtors Act. This act offers several financial benefits for real estate agents, including better tax rates, tax deferral opportunities, and income splitting opportunities.

Incorporation for real estate agents is an important evolution within the industry, with Bill 104 allowing realtors to maximize their income using new financial management means.

What You Need to Know

A change took place 15 years ago that allowed Ontario doctors to take control of their income, allowing them to incorporate their business. That change will be coming soon to other Ontario professionals as well, including architects, lawyers and real estate agents. Soon the legislation will allow realtors to incorporate themselves with Bill 104, the Tax Fairness for Realtors Act, after years of failed attempts.

Is PREC Right For You?

The factor that affects real estate agents, for the most part, is Taxes! As the highest marginal rate is 53.53%. This means once a realtor becomes successful, more than half of their hard-earned money is gone in taxes. Getting a PREC can lower your tax rate down to $13.5% from 53.53% if your taxable income is below $500,000. If it is more than $500,000 taxable, you will be paying 26.50% on income above $500,000. 

We can help you navigate the incorporation process. 

The incorporation process involves adhering to filing requirements deadlines, record keeping, handling of indirect taxes (employer health tax, WSIB, GST/HST on commission and taxes surrounding payroll), set up, and annual maintenance costs. 

 

Want to know if PREC is right for you?

Book a free consultation to find out.

Rahul Gupta | Account Manager

Rahul Gupta specializes in taxes for incorporated businesses. He’ll help you and your agents make sense of the Tax Fairness for Realtors Act and get started with incorporation. Book a consult with Rahul, today.

Incorporate Your Business, now!

Learn  how to get more back from your tax returns

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BG Accounting & Business Solutions

BG Accounting & Business Solutions is a full business services organization dedicated to handle bookkeeping  and tax preparation for clients throughout the Brampton, Mississauga and GTA areas.

Contact

Tel:  905 789-8827
Fax: 905 790-8826

info@bgaccountinggroup.com

#200 - 4257 Sherwoodtowne Blvd,
Mississauga, ON L4Z 1Y5

BG Accounting & Business Solutions

BG Accounting & Business Solutions is a full business services organization dedicated to handle bookkeeping  and tax preparation for clients throughout the Brampton, Mississauga and GTA areas.

Contact

Tel:  905 789-8827
Fax: 905 790-8826

info@bgaccountinggroup.com

#200 - 4257 Sherwoodtowne Blvd,
Mississauga, ON L4Z 1Y5