We are experts in real estate tax preparation and CRA exam preparation for real estate agents and other self-employed individuals based in vaughan, Brampton, Toronto and most of the GTA. We are pleased to offer you this complementary tax deduction checklist tool. Be sure to review it and use it as a business tool to help you stay in control. We help many real estate professionals to reduce their taxes. We are happy to answer all your tax questions.

As a real estate agent, your gross commission is not a salary. This is business income that must cover both your salary and your expenses. Face it successfully with a solid tax strategy. By keeping careful expense records and choosing a professional accountant who takes the time to claim all allowable deductions, you can achieve significant tax savings and get more out of each hard-earned commission check.

Prepare receipts for any deductible expenses. Common items include local real estate fees, license and agent renewal courses, office expenses, car, cell phone, advertising and marketing expenses, insurance not paid for by your agent, and business equipment and supplies not provided by your agent.

Many people, even seasoned real estate professionals; they don’t appreciate how much money they can save from tax deductions. For example, if you are single and your taxable business income is $100,000, every dollar you deduct from your taxable income saves you almost 50 cents in taxes.

There are dozens of possible tax deductions for real estate professionals. All expenses related to your real estate business are deductible if:

ordinary and necessary;

directly connected to your company; AND

a reasonable amount

Only business expenses are deductible, personal expenses cannot be deducted. However, if you buy something for both personal and business use, you can only deduct the business part of the expense.

Subject to some important exceptions, there is no limit to the amount you can deduct as long as the amount is reasonable and you don’t deduct more than you spend. In general, an effort is reasonable unless there are cheaper and more practical ways to achieve the same result. If the CRA determines that your deductions were unreasonably high, it won’t allow them, or at least won’t allow the part it thinks is unreasonable.