How to Choose A Real Estate Accountant

How to File Taxes if Self-Employed in Ontario

Choosing the right real estate accountant is vital to the finances of any real estate agent. 2020 has been a rollercoaster of a year for many businesses around the world and having a company that specializes in accounting and tax returns for real estate agents will enable your business to be more financially savvy and secure.

Toronto’s housing market is booming and businesses are growing. Real estate agents often find there is more work than there are hours in a day. Choosing the right real estate accountant in Toronto will take the burden of organizing your finances off your shoulders and help you focus on more important tasks like buying and selling those properties!  

How to choose a real estate accountant

  • Choose an industry expert:
    You want the assistance of a real estate accountant who is aware of the subtleties in real estate accounting and is making the best decisions for your business. A specialized accountant can help you with decisions impacting your taxes, HST and returns, financial planning, bookkeeping, and providing you with a full picture to weigh your options. Insufficient advice can cost you opportunities, time and money.
  • Choose an accountant aware of the current rules and regulations:
    Rules and regulations are constantly evolving and being updated. Real estate accountants need to be up to date on industry regulations and tax changes. A specialized real estate tax accountant with a team working in different industries provides you with more detailed information to make the best decisions for you and your business. Being up to date is extremely important for what impacts you now and also for your investments in the future.
  • Choose a real estate accountant who works with you to achieve your end goal:
    Both you and your real estate accountant need to be in harmony with the end goal. It is vital to establish goals and a plan to ensure you are all working towards the same result. Choose an accountant who understands your needs and is implementing the decisions made to work for you!
  • Choose an accountant that fuels the momentum:
    Oftentimes clients assume plans made with an expert real estate accountant can be drafted over to a more generalized or affordable accountant. A decision like this will negatively impact the finances of your business. A specialized agent is working in your best interest with experience in accounting for real estate agents. As your business grows and life changes so do the changes in your accounting evolve. An expert accounting team is vital to the health of your financial and future goals. For growth to continue its momentum it is important to continue the services of your expert real estate accountant.
  • Questions to ask your real estate account:
    • How many real estate agents do you work with on average?
    • What real estate holdings do your clients represent?
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    • Ask questions that can help provide you with a better picture of their expertise and give you an understanding of the services they can provide.

Tax accounting services for real estate agents

The majority of the real estate agents in Toronto work as independent contractors or as sole proprietors of their business. This brings a certain freedom but also added financial responsibilities. Real estate agents and brokers face added taxes and reporting requirements but on the flip side are also eligible for certain tax deductions. SRJ Chartered Professional Accountants are real estate tax accountants in Toronto who have specialized in preparing and filing your taxes, ensuring required forms are filled and all entitled tax deductions have been explained.

Tax deductions are beneficial 

Real Estate agents lose out on a lot of funds when they don’t use the tax deductions available to them. Tax deductions are there for your benefit. For example, if your taxable income is $100,000 and you’re single, every dollar deducted from your taxable income saves you almost 40 cents. This quickly adds up and puts it back in your pocket. Your real estate business expenses are deductible if they are related to your business directly, reasonable in the amount being deducted, and ordinary and necessary in your business.

Common expenses that you can deduct:

This checklist can be used to assist real estate agents and brokers to ensure you don’t miss any deductions. These deductions only apply to business expenses:

  • Marketing expenses – websites, postcards, flyers, newspaper advertising, websites.
  • Car Expenses – Insurance, business mileage, interest on car loans, license plate fees, parking and toll expenses, lease payments.
  • Cab/Uber fares for business travel
  • Business meals and entertainment
  • Bookkeeping and accounting fees
  • Legal fees
  • Professional dues
  • Computers/Laptops, Computer software
  • Desk fees
  • Education – To improve and learn new skills
  • Office expenses – including home office expenses, equipment and supplies.
  • Internet access
  • Insurance
  • Interest – Paid interest business credit card(s) and 
  • Cell phone and telephone expenses.
  • Travel expenses – business conventions, hotels, meals and transportation. 
  • Taxes
  • Wages paid to employees
  • Benefits paid to employees

SRJ Chartered Professional Accountants is a full-service CA accounting firm providing you with the top real estate accounting services in Toronto and Mississauga. We are also one of the two full-service accounting firms accredited by the Real Estate Council of Ontario to issue CE Credits. We currently offer the course ‘Tax Essentials for Real Estate Professionals’. For more information contact us at 647-725-2537 or send an email to