Tax Issues for Real Estate & Property Management Businesses
Need a yearly summary of income and expense deductions. Report income on T4A (net of HST).
Business Deductions for Real Estate & Property Management Businesses
Tax deductible expenses include:
- Home office and office expenses
- Automobile expenses
- Gift and meals to clients
- Referral fee (proof of fee paid needed)
- Memberships and Professional Fees
- Professional Insurance
- Courses – You can include your tuition expense as a tuition credit on your personal tax return (Schedule 11, to be more specific). or you can include your tuition expense as an actual Expense on your personal tax return (T2125) – ask us.
- Commission paid
HST Issues for Real Estate & Property Management Businesses
- If you earn more than $30,000 in commissions, you will be required to register and remit HST to the CRA. Ask us.
- Your provider should exclude HST from your T4A income.
- If you pay HST on a yearly basis, you may be required to pay HST instalments during the year. Ask us.
Accounting Issues for Real Estate & Property Management Businesses
- Trust account tracking – keep separate accounts for the company and the buildings.
- Use an appropriate property management system. Ask us about your options.
- CRA requires withholding tax to be paid during the year for non-resident investors/ property owners. Ask us.
- Use tracking categories when tracking income and expenses from multiple properties. Ask us.
- Set up a proper chart of accounts to fit your operations and for each property.
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