Realtor accountant in Surrey

Commission income and cash planning

Unlike a salaried employee, a realtor has no tax withheld from commissions — which makes it easy to under-set-aside and get surprised at filing, and often means paying tax by instalments. The first thing we set up is a realistic plan for what to hold back and when, so a strong year in the Surrey market does not turn into a cash crunch the following spring.

PRECs and incorporation

British Columbia allows licensed realtors to form a personal real estate corporation (PREC), which can let commission income be earned through a corporation and open up tax deferral and planning. It is not automatically right for everyone — it depends on your earnings and how much you draw — and it carries setup and licensing requirements. We assess whether a PREC fits your situation and handle the corporate side if it does.

Expenses, GST and records

Realtors can deduct the genuine costs of earning commissions — vehicle, marketing, brokerage and board fees, licensing, and home office where it qualifies — and, once registered, deal with GST on commissions and recover it on expenses. The rules on vehicle and home office are specific, so clean records are what keep the claims defensible. We put simple tracking in place so nothing legitimate is left on the table.

When a PREC starts to make sense

The question almost every successful Surrey agent eventually asks is whether to incorporate through a personal real estate corporation. There is no single income figure that flips the switch — it depends on the gap between what you earn and what you actually need to draw to live. When you consistently earn more than you spend, a PREC lets you leave the surplus in the corporation taxed at lower corporate rates and defer the personal tax until you take it out, which can be a meaningful planning advantage over a strong few years. Against that, a PREC adds a corporate return, more formal bookkeeping and setup and licensing steps, and the anti-avoidance rules around paying family members have to be respected. It is a real decision with real trade-offs, not a default. We model it on your actual numbers — including the years where staying unincorporated is still the right call — so you incorporate when it genuinely pays, not because someone said you should.

What EverStone handles for you

One CPA, one fixed fee quoted up front, everything below covered:

• T1 or corporate (PREC) tax return prepared and filed
• Assessment of whether a PREC makes sense for you
• Commission cash-flow and instalment planning
• Vehicle, marketing, home-office and fee deductions set up
• GST registration and filing
• CRA correspondence handled for you

Fixed fees, fully online

EverStone is an Abbotsford CPA firm, and every engagement runs online — video calls, e-signature and secure document exchange — so you never lose a day to an office visit. You are not billed by the hour or the phone call: your fee is a fixed amount agreed before any work starts, so you can ask a question in June without watching a meter. The same CPA handles your file all year, which means the person who prepares your return is the person who answers when you call. See what it costs or book a free, no-obligation consult and leave with a clear written quote.

About the author

Sunny Dhillon, CPA

Founder of EverStone CPA and a member of the Chartered Professional Accountants of British Columbia (CPABC). More about Sunny →