Realtor accountant in Nanaimo
A central Island realtor might list a view home in Hammond Bay, show a starter house in Harewood and drive a buyer from the Mainland out to acreage in Cedar or Nanoose Bay, all in one week. The income comes as commission with nothing withheld. EverStone is an accountant for realtors and a Nanaimo small-business accountant, at fixed fees, online.
Quick answer: A Nanaimo realtor is paid commission with no income tax, CPP or EI withheld, and usually has to register for GST and charge it on that commission. A realtor can also claim the business share of a vehicle with a proper log. BC permits personal real estate corporations, so commission can be paid to a company and taxed at the small-business rate until you draw it. EverStone prepares the returns either way. A self-employed T1 with schedules is commonly $250–$450.
For an unincorporated Nanaimo realtor, a self-employed T1 with schedules is commonly $250–$450 a year. For a realtor’s PREC, bookkeeping, payroll and the year-end T2 with statements usually come to $450–$650 a month all-in. The published fees show every starting point.
Commission with nothing withheld
The brokerage pays your commission gross. No income tax, CPP or EI comes off it. Every closing therefore carries tax that is still unpaid, and the bill arrives on April 30. A strong spring market can make that bill large, and the instalment reminders follow for the next year.
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. An unincorporated realtor files the T1 by June 15 but still pays by April 30. Setting aside a share of each commission cheque the day it lands is the habit that prevents all of this. The tax instalment calculator shows what to set aside.
GST on each commission
Real estate commission is a taxable supply. Registration becomes mandatory once your commissions pass $30,000 in four consecutive calendar quarters, and many realtors register from their first deal so they can recover GST on their costs. The brokerage then pays GST on top of the commission, and you remit it, less input tax credits on marketing, vehicle costs, desk fees and your phone.
The usual errors are small and repeated: GST spent rather than set aside, credits claimed on personal costs, or a return filed late. A sole proprietor filing annually with a December year-end files by June 15 and pays by April 30. A PREC files and pays three months after its year-end. See GST registration.
A personal real estate corporation in BC
BC permits licensees to earn commission through a personal real estate corporation. The brokerage pays the PREC, and the company pays tax on its active business income at the small-business rate of 11% combined. Money you leave in the company is taxed at that rate until you take it out as salary or dividends, when personal tax applies.
The gain is a deferral on money you do not need to live on. A realtor who spends everything earned gains little and takes on a T2, a BC annual report and a separate set of books. Dividends to family members are limited by the tax on split income rules. The PREC has to meet the regulator’s requirements before the brokerage can pay it. The PREC accountant for BC realtors page covers the setup.
Kilometres from Ladysmith to Qualicum Beach
The central Island market is spread out. A week of showings can run from Ladysmith in the south to Parksville and Qualicum Beach in the north, with Lantzville and Nanoose Bay in between. The vehicle is usually the largest claim on a realtor’s return, and the CRA expects a log to support the business share.
The log records each business trip with its date, destination and kilometres, plus odometer readings at the start and end of the year. Inside a PREC the company can own the vehicle, which can create a taxable benefit, or pay you a reasonable per-kilometre allowance for using your own. The mileage and vehicle log sets out what to record.
Buyers from the Mainland, and the trips that go with them
Many Nanaimo buyers are moving over from the Lower Mainland. That can mean a ferry crossing to meet a client, a listing presentation in Vancouver, or a day showing several towns to someone who has never lived on the Island. Ferry fares and travel for a business purpose are deductible, and the receipts belong with the deal they relate to.
Meals with clients are generally limited to 50% of the cost. Closing gifts are deductible when they are a genuine business cost. Coding each type separately makes the limits apply automatically. The 50% meals rule explains the limit.
Brokerage fees, marketing and the home office
Desk fees, franchise fees, listing photography, staging, signs and online advertising are ordinary business expenses. They are often the largest lines after the vehicle, and the CRA looks at them first. Keep the invoices and the brokerage statements together, because they show what was charged and what was netted from your commission.
A home office qualifies when it is where you mainly work, or is used only for the business and regularly for meeting clients. The claim is a share of utilities, insurance and maintenance. For a homeowner, claiming CCA on the home is usually a mistake because it can affect the principal residence exemption.
What EverStone handles for you
One CPA, one fixed fee agreed up front:
- Personal return with T2125, or the T2 and statements for a PREC
- GST registration, returns and input tax credits
- Instalments sized to your actual commission year
- Vehicle and home-office claims supported by records
- Salary and dividend planning from a PREC
- Bookkeeping reconciled to the brokerage statements
Realtors who own rentals as well can have the personal return and the T776 handled on the same file.
Fixed fees, fully online
EverStone is an Abbotsford CPA firm, and Nanaimo realtors are served entirely online. There is no Nanaimo office. Brokerage statements, receipts and the vehicle log come in through a secure upload link, questions go by email first, and a video meeting is booked when it helps. That suits a working day spent between showings. The fee is fixed and agreed before work starts.
Prepared and reviewed by a Chartered Professional Accountant at EverStone CPA, an Abbotsford CPA firm working with small businesses and incorporated owners across British Columbia. Updated . About the firm · Send an enquiry
What a realtor has to get right
| Item | Why it matters |
|---|---|
| Tax set aside | Commission is paid with nothing withheld |
| GST | Commission is taxable, and registration is mandatory past the small-supplier threshold |
| PREC or not | A deferral that only pays when income is left in the company |
| Vehicle log | The record behind the largest expense claim on most returns |
| Sales tax where you operate | 5% GST plus 7% BC PST: two registrations, two returns |
Source: Real estate professionals accounting. General information, not advice.
Other services for Nanaimo realtors: corporate tax for a PREC and monthly bookkeeping.
Nanaimo accounting for realtors and personal real estate corporations FAQ
Is a PREC worth it for a Nanaimo realtor?+
Do I charge GST on commission?+
Are ferry trips to meet Mainland buyers deductible?+
When are my instalments due?+
What does a realtor’s accountant cost in Nanaimo?+
Do you work with realtors outside Nanaimo itself?+
Related services and local guides
Nearby cities, the rest of what we do for Nanaimo businesses, and the reference pages behind this one.
Selling real estate on the central Island?
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