--- title: "Toronto Realtor Accountant: PRECs, HST and Commission" url: https://www.everstonecpa.com/realtor-accountant-toronto description: "Toronto realtors: Ontario PRECs since 2020, HST on commission, car and home-office claims and tax instalments, handled online. Send an enquiry." type: service-in-a-city updated: 2026-10-02 summary: "A Toronto realtor either reports commission personally on the T1 or earns it through an Ontario personal real estate corporation that files a T2. Commission is subject to 13% HST once you are registered, and registration is mandatory past $30,000 of taxable sales in four consecutive quarters. Car and home-office claims rest on records kept through the year." faq_count: 7 publisher: EverStone CPA Inc., a Chartered Professional Accountant firm registered with CPA British Columbia and CPA Alberta service_area: British Columbia, Alberta, Ontario and Manitoba language: en-CA contact: info@everstonecpa.com · https://www.everstonecpa.com/book-online --- [Home](https://www.everstonecpa.com/) [Accountant in Toronto](https://www.everstonecpa.com/accountant-toronto) Realtors Realtors & PRECs · Toronto # Realtor accountant in *Toronto* Ontario has allowed realtors to earn through a personal real estate corporation since 2020. For a Toronto agent that turned one tax return into two and opened a real choice about how commission reaches you. EverStone is an [accountant for realtors](https://www.everstonecpa.com/accountant-for-realtors) and a [Toronto small business accountant](https://www.everstonecpa.com/accountant-toronto), serving the GTA remotely at fixed fees. [Get My Fixed Quote](https://www.everstonecpa.com/book-online)[Ask a Free Question](https://www.everstonecpa.com/quick-question) **Quick answer:** A Toronto realtor either reports commission personally on the T1 or earns it through an Ontario personal real estate corporation that files a T2. Commission is subject to 13% HST once you are registered, and registration is mandatory past $30,000 of taxable sales in four consecutive quarters. Car and home-office claims rest on records kept through the year. EverStone handles the returns, HST and instalment planning remotely. For a one-owner Toronto realtor’s PREC, monthly bookkeeping, payroll and the year-end T2 with statements usually cost from $500 to $700 a month all-in. The year-end covers the T2 with Schedule 1 and Schedule 50, the CCA schedule, the small business deduction, T4 or T5 slips for the owner’s pay, and the instalments for the year ahead. The [hub for realtors, PRECs and brokers](https://www.everstonecpa.com/real-estate-professionals-accounting) explains commission income in general. If you also hold rental property, see [accounting for real estate investors](https://www.everstonecpa.com/accountant-for-real-estate-investors). ## What changed for Ontario realtors in 2020 Before 2020, an Ontario salesperson or broker had to take commission personally. Every dollar was taxed at personal rates in the year it was earned, whether you spent it or not. Since then, a registrant can have the brokerage pay commission to a personal real estate corporation instead. The corporation pays tax at corporate rates, and you decide how and when money moves to you. The rules are narrow. The corporation exists to carry on your real estate trading, the ownership and control conditions are set by the province, and the brokerage relationship stays in place. In practice a PREC is a vehicle for one agent’s commission, not a general holding company. Get the structure confirmed before the first commission is redirected, because a cheque paid to the wrong entity is awkward to undo. ## Does a PREC make sense for you? The benefit comes from leaving profit in the corporation. If you draw everything you earn to cover a mortgage and living costs, the deferral is small and the extra T2, bookkeeping and year-end statements cost more than they save. If you earn well above what you spend, the gap stays in the company at a lower rate until you need it. The answer turns on how much you draw, not what you gross. Run your real numbers through the [incorporation calculator](https://www.everstonecpa.com/incorporation-calculator) and the [salary-versus-dividends calculator](https://www.everstonecpa.com/salary-vs-dividends-calculator) before you decide. Then decide the draw pattern at the start of each year. Money taken from the PREC without being declared as salary or dividends becomes a shareholder loan. If it is not repaid within one year after the corporation’s year-end, it is generally taxed as your income. The [shareholder loans guide](https://www.everstonecpa.com/blog/shareholder-loans-canada-taking-money-out-of-corporation) covers the trap. ## HST on commissions Real estate commission is a taxable supply, so a registered agent charges [13% HST](https://www.everstonecpa.com/ontario-tax-facts) on it. Registration is mandatory once taxable sales pass $30,000 in four consecutive calendar quarters. Most full-time Toronto agents cross that early. If you incorporate, the PREC needs its own HST registration, separate from the one you held personally. Commission paid to the old number after the switch is a common first-year error. Registration also lets you recover HST on staging, photography, advertising and vehicle costs through input tax credits. Most agents with annual revenue of $1.5 million or less file once a year. That makes it easy to spend the HST held in the account. Moving each commission’s HST to a separate account the day it lands prevents a large April bill. See [GST/HST filing in Toronto](https://www.everstonecpa.com/gst-hst-filing-toronto). ## Car and home-office claims Most Toronto agents drive between listings, showings and the brokerage across the GTA. The vehicle claim is based on the business share of kilometres, and a log is what proves that share. A log kept for the whole year, or for a representative period that matches the pattern, holds up. A percentage estimated at filing time does not. Use the [mileage and vehicle log](https://www.everstonecpa.com/mileage-and-vehicle-log) from the first week. A home office is claimable where it is your principal place of business, or used regularly and exclusively to meet clients. A desk available at the brokerage weakens the claim but does not end it; what counts is where the work actually happens. Inside a PREC, both claims work differently. The corporation reimburses you or owns the car, and a company-owned car can create a taxable benefit. ## Commission timing and instalments Commission arrives on closing dates, not a payroll calendar. A spring market can deliver most of a year’s income in a few months, and the gross deposit is before splits, desk fees and marketing. Personal instalments are required when net tax owing exceeds $3,000 in the current year and either of the two previous years. They are due March 15, June 15, September 15 and December 15. CRA’s reminder is based on history, so a rising year can leave you short even if you pay it exactly. Setting aside a fixed share of each commission is the discipline that keeps April calm. The [tax instalment calculator](https://www.everstonecpa.com/tax-instalment-calculator) shows the schedule. ## What EverStone handles for you One CPA, one fixed fee agreed up front: - PREC T2 return and year-end financial statements - Personal T1 coordinated with the corporate return - HST registration and filings for you or your PREC - Vehicle, home-office and marketing claims supported properly - Instalments planned against real closing dates - Salary and dividend mix reviewed each year ## Fixed fees, fully online EverStone is a CPA firm serving Toronto realtors entirely online: video calls, a secure upload link and e-signature. A self-employed T1 with schedules is commonly $275–$500; a PREC with bookkeeping and a T2 is quoted after we review your enquiry. If you only need a decision made, a 45-minute [Advice Call](https://www.everstonecpa.com/advice-call) is a flat $225 + GST. See [what it costs](https://www.everstonecpa.com/pricing). About this article **EverStone CPA** Prepared and reviewed by a Chartered Professional Accountant at EverStone CPA, a CPA firm working with small and midsized businesses in BC, Alberta, Ontario and Manitoba. Updated September 2026 . [About the firm](https://www.everstonecpa.com/about) · [Send an enquiry](https://www.everstonecpa.com/book-online) ## What a Toronto realtor has to get right What a Toronto realtor has to get right The items that decide a realtor’s year-end — for a business operating in Toronto, Ontario | Item | Why it matters | | Commission income | Taxed on the gross before splits and fees come out | | Personal real estate corporation | Permitted in Ontario since 2020; changes which return the income lands on | | HST on commissions | Taxable once registered; a PREC needs its own number | | Vehicle and home office | Claims rest on a log and on where the work really happens | | Sales tax where you operate | 13% HST, a single registration and a single return | Source: [Real estate professional accounting](https://www.everstonecpa.com/real-estate-professionals-accounting). General information, not advice. Other services for Toronto businesses: [fractional CFO work](https://www.everstonecpa.com/cfo-services-toronto) and [year-end statements](https://www.everstonecpa.com/financial-statements-toronto). Common questions ## Toronto accounting for realtors and personal real estate corporations FAQ **Can Ontario realtors incorporate?** Yes. Since 2020 Ontario has permitted salespersons and brokers to receive commission through a personal real estate corporation, subject to provincial conditions on ownership and control. The brokerage pays the corporation instead of you. [Ask about your case →](https://www.everstonecpa.com/quick-question) **Is a PREC worth it if I spend most of what I earn?** Usually not. The advantage comes from profit left in the corporation. If you draw nearly everything, the added T2 and bookkeeping can outweigh the deferral. **Do I need a new HST number when I incorporate?** Yes. The PREC is a separate person for HST and needs its own registration. Tell the brokerage which number to use from the first commission paid to the corporation. **How much of my car can I claim?** The business share of your driving, supported by a log. Driving from home to the brokerage and back is generally personal, while trips to showings and listings are business. **Why was my April tax bill so large?** Usually because commission arrived gross, instalments were set from an earlier, smaller year, and HST collected was spent before it was filed. Setting aside tax and HST from each commission fixes all three. **Do you work with realtors outside Toronto?** Yes. EverStone serves agents across the GTA, including Mississauga, Brampton, Vaughan and Markham, and across BC, Alberta, Ontario and Manitoba, entirely online. **Do you work with businesses outside Toronto itself?** Yes. Realtors in Mississauga, Brampton, Vaughan, Markham and the rest of the GTA are served the same way as those in Toronto, remotely and at the same fixed fees. ## Related services and local guides Nearby cities, the rest of what we do for Toronto businesses, and the reference pages behind this one. [Realtor accountant in Vancouver The same specialism under BC’s PREC rules and GST.](https://www.everstonecpa.com/realtor-accountant-vancouver) [Personal tax accountant in Toronto T1 preparation for Toronto owners, coordinated with the corporate return.](https://www.everstonecpa.com/personal-tax-accountant-toronto) [Tech startup accountant in Toronto SR&ED, founder pay and HST for Toronto software companies.](https://www.everstonecpa.com/tech-startup-accountant-toronto) [Accounting for realtors Commission income and PREC structures](https://www.everstonecpa.com/accountant-for-realtors) [Accounting & CPA services in Toronto CPA services for Toronto businesses](https://www.everstonecpa.com/accountant-toronto) [Bookkeeping in Toronto Bookkeeping for Toronto businesses](https://www.everstonecpa.com/bookkeeping-toronto) [Corporate tax (T2) in Toronto Corporate tax for Toronto businesses](https://www.everstonecpa.com/corporate-tax-accountant-toronto) [GST/HST filing in Toronto GST/HST for Toronto businesses](https://www.everstonecpa.com/gst-hst-filing-toronto) [Payroll in Toronto Payroll for Toronto businesses](https://www.everstonecpa.com/payroll-services-toronto) [Accountants across Ontario Remote CPA service throughout Ontario](https://www.everstonecpa.com/accountant-ontario) [Ontario tax facts Current rates and thresholds for Ontario](https://www.everstonecpa.com/ontario-tax-facts) Fees are fixed and agreed in writing before the work starts; [the published fee page](https://www.everstonecpa.com/pricing) shows the starting points. ### What clients say Rated 5.0 on Google across 21 client reviews. [Read all reviews](https://www.everstonecpa.com/reviews) ★★★★★ “…have been completing my bookkeeping, taxes and financials for the last 2 years and they have been amazing. Thank you!” R. H. Verified Google review ★★★★★ “…We switched to him last year for both our personal and small-business taxes — responsive, knowledgeable and quick.” Heather Powers Verified Google review ### Starting fees Every fee is fixed in writing before any work begins. - **Monthly bookkeeping, GST/PST filing included** from $325 a month - **Payroll, remittances, T4s and ROEs** included in monthly bookkeeping - **Books, payroll and the year-end T2 together** $500–$700 a month - **Corporate year-end and T2 return** fixed fee, quoted in writing - **Personal tax return (T1)** from $125; self-employed or rental $275–$500 - **Catch-up bookkeeping** from $2,200 per year of records - **Controller or CFO support** controller from $1,650, CFO from $2,750 a month - **One-off advice call with a CPA** $225 plus GST [Get My Fixed Quote](https://www.everstonecpa.com/book-online?service=monthly#enquiry-form) ## Selling real estate in Toronto? One CPA for your corporate tax, books and planning. Fixed fee, fully online. Send an enquiry. [Get My Fixed Quote](https://www.everstonecpa.com/book-online)[Ask a Free Question](https://www.everstonecpa.com/quick-question) ## Remote accounting for realtors EverStone is a sole practitioner CPA firm, serving Toronto owners entirely online. **There is no Toronto office and no local staff.** Meetings are held by video or phone, documents come in through a secure upload link and are signed by e-signature, and no visit is required at any point. Commission statements, the PREC decision and your expense records are handled together, because in practice they are one decision. ## Talk to a CPA about this One Chartered Professional Accountant, start to finish. Fixed fees, quoted in writing before any work begins, and no obligation from a first conversation. [Get My Fixed Quote](https://www.everstonecpa.com/book-online) [Ask a Free Question](https://www.everstonecpa.com/quick-question) Email info@everstonecpa.com --- Source: https://www.everstonecpa.com/realtor-accountant-toronto Prices: https://www.everstonecpa.com/pricing · Contact: info@everstonecpa.com · https://www.everstonecpa.com/book-online