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Real Estate Tax Accountant

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Real Estate

Working in Real Estate exposes you to many tax and reporting requirements. We understand that it can be challenging to meet these requirements and manage all your business finances. Let us take care of your finances so you can focus on your business. The services we provide allow you to take advantage of the tax benefits available to you. In addition, other accounting services provided support your company for future growth and success. Contact SRJ Chartered Accountants to help you with all your tax and accounting needs.

Whether you are incorporated or self-employed. SRJCA is here to assist with any and all your tax needs. Speak to us on how we can help you build your financial profile.

Self Employed & Real Estate Tax Accountant and Returns Services

As a sole proprietor or self-employed business owner, you are in charge of your own business. You will face additional taxes and reporting requirements, but you may also be eligible for certain business tax deductions. We assist hundreds of self-employed business owners complete their self-employed tax returns in Toronto.

As a sole proprietor, you are in charge of your own business and to complete your self-employed tax returns in Toronto. As far as the tax code is concerned, you and your business are a single entity. While this entails certain freedoms, it also creates added responsibilities. You will face additional taxes and reporting requirements, but you may also be eligible for certain business tax deductions.

Under current income tax legislation, the business fiscal year-end must be December 31. The self-employed income tax is due by April 30 following the December 31 year end, but the personal income tax return including the proprietorship has a filing deadline of June 15. Quarterly installments for income tax and Canada Pension Plan may be required for the proprietorship.

As a sole proprietor, your self-employed income tax return in Toronto must include financial statements of one or more of the following applicable forms:

Form T2125, Statement of Business Activities

Self-Employed Tax Returns in Toronto

Let's discuss some tax breaks available for self employed individuals when completing their self employed tax returns in Toronto:

Split income with family members — If your spouse, kids or other family members performed some tasks for your self-employed business you can justify paying them salary or wages. The amounts you pay must be reasonable for the work completed in order to be deductible against your business income on your self employed tax return in Toronto.

Claim home office costs for business use — If your home office is your principal place of business, or is used on a regular and continuous basis for meeting clients then you will be entitled to deduct a portion of different types of costs for your self-employed tax return in Toronto. These include expenses such as mortgage interest, property taxes, home insurance, utilities, repairs and maintenance and landscaping, to name a few. You will not be able to create or increase a loss from your business activities when deducting home office expenses on your self-employed tax return Toronto, but you could bring your taxable income down to zero with these expenses. If your home office costs exceed your income then the excess can be carried forward to future years to offset income from the business in the future for your self-employed tax return in Toronto.

Deduct other self-employed business expenses — When you are self-employed, you are generally entitled to deduct any reasonable costs incurred to earn income from your business for your self-employed personal tax return in Toronto. There are some restrictions on certain expenses, but the list of deductible expenses is long. Do not forget to deduct things such as advertising and promotion, meals and entertainment (generally 50 per cent of these costs are deductible), memberships, subscriptions, licences, office supplies, salaries and wages (including those paid to family members), telephone, vehicle expenses (a portion of gas and oil, insurance, registration, repairs, loan interest, lease costs, automobile club dues, car washes), among other costs. For an expanded list of deductible business expenses to claim on your self-employed tax return in Toronto contact us directly.

Consider Incorporation for Your Business

With the newly passed bill 145, real estate professionals in Ontario are able to incorporate as of October 1st, 2020. This means that realtors can benefit upon incorporation in Ontario, from the substantially reduced corporate income tax rate. If your business has grown in size and profitability and you do not feel a self-employed tax return in Toronto is still the best option, you might want to consider carrying on business through a corporation. A small business corporation is entitled to a low rate of tax on its first $500,000 of active business income (about 15 per cent – but this varies by province). This can make sense particularly where you are able to leave some of your earnings in the corporation without paying it all out to yourself as salary or dividends.

Examples of individuals who may have to file their self-employed personal income tax return in Toronto are:

  • Realtors
  • Consultants
  • Doctors
  • Dentists
  • Small business owners
  • Chiropractors
  • Franchises
  • Restaurants
  • Massage Therapists

Contact us directly to learn more about self-employed tax returns in Toronto and how we can assist you with filings. Learn about financial accounting services Toronto.

Consider Incorporation for Your Business

Tax Advantages for Real Estate Professionals

  • Split income with family members
  • Claim home office costs for business use
  • Deduct self-employed business expenses
  • Incorporation at reduced corporate tax rate (Bill 145)
  • Low rate of tax on first $500,000 of active business income

Real Estate

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Whether you are incorporated or self-employed, SRJCA is here to assist with any and all your tax needs. Speak to us on how we can help you build your financial profile.

SRJ Chartered Accountants has two conveniently located offices in the Greater Toronto Area.

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Services

Corporate Tax Corporate Tax
Bookkeeping Bookkeeping
Personal Tax Personal Tax
Buying & Selling Buying & Selling
Incorporation Incorporation
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Shayan Rashid, CPA

Shayan Rashid, CPA

Co-Founder

Shayan Rashid helps real estate professionals by providing strategic advice in tax, accounting, and business growth in Toronto and all across Canada. Shayan helps agents and investors navigate complex financial situations so they can effectively manage their income, deductions, and long-term investments.

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Junaid Usmani, CPA, CA, MTax

Junaid Usmani, CPA, CA, MTax

Co-Founder

Junaid Usmani supports real estate professionals in growing their business by providing tax planning and financial strategies. Junaid helps maximize profitability by understanding the unique challenges of self-employed agents, brokers, and investors.

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Tracie Heier, CPA, CA, MPAcc

Tracie Heier, CPA, CA, MPAcc

Partner

Tracie helps real estate professionals manage their business by providing accounting and tax services. With over a decade of experience, she helps clients stay organized, compliant, and financially strong while navigating the demands of the real estate industry.

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FAQ

Frequently Asked Questions

Real estate accounting differs from general accounting in that it involves unique income and expense reporting due to the nature of real estate transactions. For example, in real estate, there is a focus on tracking rental income, property depreciation, and capital gains when properties are sold. Real estate accounting also requires specific attention to HST/GST rules, especially for properties that are bought and sold, or rented for business purposes. Additionally, there are deductions related to property management, like mortgage interest, property taxes, and maintenance costs, which differ from the typical expenses seen in other industries.

A real estate accountant in Toronto specializes in managing the financial aspects of property transactions, rental income, and property investments. They assist with bookkeeping, ensuring that all rental income, mortgage payments, property taxes, and other expenses are properly recorded. They prepare financial statements for real estate businesses or property owners, including income statements, balance sheets, and cash flow reports. They also provide tax planning advice related to real estate investments, such as helping clients maximize tax deductions on property expenses, ensuring compliance with tax regulations (like GST/HST), and advising on capital gains taxes when properties are sold.

In Canada, the tax rules for real estate income depend on the type of income generated and the type of property. Rental income from residential or commercial properties is taxable and must be reported as income on your personal or business tax returns. Property owners can deduct expenses related to the property, such as mortgage interest, property taxes, maintenance costs, and insurance premiums. For real estate investors, there are specific rules regarding capital gains taxes when selling a property that was held for investment purposes.

Yes, SRJ Chartered Accountants handles rental property tax and expense reporting. We assist property owners in ensuring that all rental income and allowable expenses are properly reported. This includes tracking expenses like mortgage interest, property management fees, repairs, utilities, and depreciation of the property. We help real estate investors maximize tax deductions by properly categorizing expenses and ensuring compliance with CRA rules. SRJCA prepares the necessary tax returns for rental income and helps property owners with quarterly HST filings (if applicable) and year-end reporting to avoid penalties.

Real estate professionals (such as realtors) can claim several tax deductions related to the expenses incurred in their business activities. These include advertising and marketing expenses, such as costs for online listings, signage, and promotional materials. Vehicle expenses for business use (like driving to show properties or meet clients) are deductible, including fuel, maintenance, and leasing costs. Realtors can also claim home office expenses if they use part of their home exclusively for business activities. Professional development costs, such as courses, seminars, and association membership dues, are deductible.

A real estate accountant benefits anyone involved in real estate, whether you’re an investor, realtor, property manager, or property developer. Real estate investors benefit from an accountant’s expertise in maximizing tax deductions, managing rental income, and handling capital gains taxes when properties are sold. Realtors benefit by having a professional track business expenses, handling HST/GST filings, and ensuring tax compliance, while also providing strategic tax advice to reduce taxable income. Property managers can rely on accountants to track income and expenses for multiple properties, file tax returns, and ensure that income splitting strategies are implemented efficiently for owners.