Real Estate & PRECs

Real Estate Accounting Services for Realtors and PRECs in Ontario

Specialized accounting for Ontario real estate agents, from commission-based sole proprietors to established Personal Real Estate Corporations. PREC incorporation, tax planning, HST compliance, and financial reporting built around how realtors actually earn.

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(647) 727-9684

What we help you with

PREC registration and incorporation
Tax planning built around commission income
HST compliance on your commissions
Bookkeeping and cloud-based reporting
Dividend vs. salary planning
Capital gains and investment management inside your PREC

You're Earning Well

Are You Keeping What You Should Be?

Real estate is commission income, and commission income is unpredictable. Some months are strong, others are quiet, and at year-end a lot of realtors find out they paid more tax than they needed to simply because nobody structured their business properly along the way.

Since Ontario introduced Personal Real Estate Corporations, agents have had a real opportunity to change that. A PREC lets you take advantage of corporate tax rates, decide when and how you get paid, and build long-term wealth inside the corporation instead of losing a large share of every commission to personal income tax. But a PREC only works in your favour if it is set up and managed correctly, and most general accountants have not worked through the specific rules that apply to realtors and RECO.

MiAccounting provides specialized accounting for real estate agents across the Toronto area, whether you are just getting licensed, weighing whether to incorporate, or already running a PREC and looking for an advisor who actually understands the business you are in.

Why Generalists Fall Short

Why Real Estate Accounting Is More Complex Than It Looks

Realtors face a set of financial decisions that most small business owners never have to think about. Here is what we see consistently when agents come to us.

None of these are signs of a poorly run business. They are signs that accounting for real estate agents requires a specialist who understands PRECs, not a generalist filing a standard T1.

Incorporation happened at the wrong time, or has not happened yet when it should have. The decision affects how much tax you pay, how you pay yourself, and how protected your assets are.

Commissions are being taxed entirely as personal income. Without a PREC, every dollar you earn is taxed at your full personal rate the year you earn it, with no ability to defer or split income.

HST on commissions is being handled inconsistently. Getting registration, filing, or input tax credits wrong creates real CRA exposure.

Payroll is taking too much time. Union rates, overtime, stat pay, and multi-crew cycles eat into hours better spent running jobs.

Personal and business expenses are mixed together, or vehicle, marketing, and home office deductions are not being claimed properly.

Year-end tax prep is reactive rather than proactive. By the time a return is filed, the opportunities to reduce liability have already passed.

Built for the PRECS

An Accountant Who Actually Understands PRECs

We work closely with real estate agents and understand the specific financial landscape realtors navigate, from RECO's incorporation requirements to the CRA rules around commission income, dividend planning, and corporate investment inside a PREC.

Fady Guirguis, CPA, CEPA, leads our advisory work. His Certified Exit Planning Advisor designation means he approaches every engagement with a longer view, helping realtors make decisions today that build real, transferable value over time, not just decisions that get through the current tax year.

We are not here to hand you a stack of paperwork and wish you luck. We are here to be the financial partner your business has been missing.

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PREC Specialists

Built for RECO & CRA Rules

Incorporation and structuring done right the first time

Fully Virtual

No Office Visits Required

Everything runs securely, wherever you're closing deals

CEPA

Certified Leadership

Chartered Professional Accountant and Certified Exit Planning Advisor on your team

How We Work With You

How We Work With Real Estate Agents

We Review Your Current Situation

We start with a consultation to understand how you are currently structured, your income level, and whether a PREC makes sense for you right now. No assumptions, no generic advice.

We Set Up or Optimize Your Structure

Whether that means incorporating your PREC from scratch, correcting how an existing PREC is being used, or getting your books clean and current, we build the right foundation before anything else.

We Stay With You as Your Business Grows

Ongoing bookkeeping, tax planning, HST filings, payroll, and advisory support throughout the year. You always know where your business stands, and you always have someone in your corner.

What It Looks Like

What Working With the Right Real Estate Accountant Actually Looks Like

Imagine closing a deal and knowing exactly what that commission means for your tax position, because your PREC is already structured to handle it. Your HST is filed correctly and on time. You are paying yourself through the mix of salary and dividends that actually makes sense for your household. Your books are current, and when a lender or a mortgage broker asks for your financials, they are clear, credible, and ready.

You are not guessing at year-end. You are not overpaying tax because nobody set things up properly. You are building.

That is what accounting for real estate agents should deliver.

What's Included

Our Real Estate Accounting Services

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PREC Registration and Incorporation Services

Setting up a PREC requires more than just filing paperwork. Our team guides you through registration and incorporation, ensuring compliance with Ontario regulations and RECO requirements.

CRA registration and corporate structure setup
Full compliance with RECO incorporation requirements
Structure built correctly from day one

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Tax Preparation and Optimization

We work closely with realtors to build personalized tax strategies around the corporate tax rate, income deferral, and dividend payments, so your PREC actually reduces what you owe.

Lower corporate tax rates on commission income
Income deferral strategies to a lower tax bracket year
Dividend payments structured for tax efficiency
Income splitting opportunities where appropriate

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HST Compliance for Real Estate Agents

Most realtors operating under a PREC are required to charge and remit HST on commission income. We keep your PREC compliant and handle any CRA correspondence that arises.

HST registration and ongoing filings
Accurate treatment of HST on eligible expenses and deductions
CRA correspondence and audit support

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Bookkeeping Services

Accurate financial records are the foundation of a well-run PREC. We offer full-service bookkeeping through a cloud-based platform, so your records are always current.

Tracking of commissions, expenses, and investments
Cloud-based access to your records anytime
Books kept current, not reconstructed at year-end

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Payroll Management

If your PREC employs staff or you choose to pay yourself a salary, payroll gets complicated quickly. We handle all aspects of processing and compliance.

CRA remittances and T4 filings
Compliance with applicable payroll regulations
Accurate, on-time processing every pay period

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Capital Gains and Investment Management

A PREC lets you invest commission income in real estate, stocks, or other assets. We help you grow those investments while minimizing capital gains tax.

Tax-efficient investment strategies inside your PREC
Capital gains calculations on property and asset sales
Full CRA compliance on investment transactions

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Year-End Financial Statements and Corporate Tax Returns

At the end of your fiscal year, we prepare detailed financial statements and corporate tax returns for your PREC, optimizing your filings to minimize your tax liability heading into the next year.

Lender-ready year-end financial statements
Corporate tax returns filed accurately and on time
Full compliance with CRA standards

The Cost of Waiting

What Happens Without the Right Accounting Support

Real estate agents who operate without specialized accounting support commonly face real, avoidable problems.Getting the right support in place early is always less costly than correcting problems after the fact.

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Overpaying tax for years because they never incorporated, or incorporated without a proper strategy behind it

HST errors on commission income that lead to CRA reassessments

Missed deductions from expenses that were never claimed or were claimed incorrectly

No clear picture of how the business is actually performing between busy seasons

Financial statements that are not ready when a lender or mortgage broker asks for them

Where We Work

Serving Real Estate Agents and PRECs Across Ontario

Fully virtual. Fully secure. Accessible wherever you're closing deals.

Toronto GTA Mississauga Brampton Vaughan Markham Richmond Hill Durham Peel York Hamilton Burlington Oakville Kitchener Waterloo Cambridge Guelph London Barrie Orillia Simcoe County Kingston Ottawa Cornwall Sudbury North Bay Thunder Bay Sault Ste. Marie Northern Ontario

FAQs

FAQs: Common Questions from Real Estate Agents

What is a PREC, and why should I set one up?+

A PREC allows real estate agents to operate their business through a corporation rather than as a sole proprietor. This structure provides several benefits, including lower tax rates, income deferral, and flexibility in how you pay yourself. By incorporating, you gain greater control over your income and can save significantly on taxes.

Can I invest inside my PREC?+

Yes. One of the key advantages of a PREC is the ability to invest in assets like real estate, stocks, or other investments. Investing within your PREC allows for tax deferral and growth opportunities, though it is important to be aware of capital gains tax when you sell assets. We provide strategies to minimize tax liability on your investments.

How do I pay myself from a PREC?+

There are two main ways to pay yourself from a PREC: through a salary or dividends. Each option has its own tax implications. A salary allows for personal tax deductions such as RRSP contributions, while dividends can be more tax-efficient. We help you determine the best approach based on your individual financial situation.

Do I need to charge HST on my commissions?+

Yes, in most cases, real estate agents operating under a PREC are required to charge and remit HST on their commission income. We handle all aspects of HST compliance, ensuring your filings are accurate and submitted on time.

When does it actually make sense to incorporate?+

It depends on your income level, your goals, and how much of your commission you plan to reinvest versus draw out personally. We walk you through the math for your specific situation rather than giving a generic answer, so you can see exactly where the tipping point is for you.

Why Choose MiAccounting for Your PREC?

Setting up and managing a PREC can be complex, but we make it straightforward. With services built specifically around how realtors earn, you get the peace of mind that your PREC is structured to maximize your tax savings, streamline your financial operations, and stay fully compliant with every relevant regulation. Let us handle the details while you focus on what you do best, helping clients buy and sell real estate. Ready to set up your PREC or optimize your existing one?

Contact MiAccounting today.

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