Commission income, handled properly.
Tax, bookkeeping and planning for realtors, brokers and investors, from a chartered accountant who understands commission timing, expense claims and the rules on property.
A good year is a large tax bill.
Commission income arrives unevenly and untaxed, and the bill for a strong year lands after the market has already turned. Instalments, reserves and a personal real estate corporation are the tools that smooth it.
We keep the numbers current enough that the tax owing is known months before it is due.
What these businesses actually need.
Personal return
T1 prepared with commission income, expenses and instalments handled properly.
Personal real estate corporation
Where a PREC makes sense, the corporate return and remuneration planned with your personal position.
Income and expenses
Commissions, brokerage fees, advertising and vehicle costs tracked as they happen, not rebuilt in April.
GST/HST
Registration and returns on commission income, with input tax credits claimed on the costs that qualify.
The issues that come up most.
Instalments
Commission income has no tax withheld. Once you owe enough, quarterly instalments become mandatory and interest applies if they are missed.
Expense claims
Vehicle, home office, advertising and client costs are all claimable within limits, and the limits are where most reassessments happen.
Property transactions
Whether a property sale is capital gain or business income depends on intent and pattern. The CRA scrutinises this, particularly for people in the industry.
Three steps, no surprises.
Get the year visible
Income and expenses tracked as they occur, with a tax reserve set aside from each commission.
Set instalments and structure
Instalments calculated on real numbers, and a PREC assessed if the income supports it.
File and plan the next year
Returns filed and the following year’s reserve and instalments set from what actually happened.
The ones we get asked most.
Should I set up a personal real estate corporation?
A PREC defers tax on income you do not need personally. If you draw everything out each year, the benefit is limited. It depends on your income and your spending.
What can I claim as a realtor?
Vehicle costs on a business-use basis, advertising, brokerage and board fees, home office within limits, and client-related costs. Records matter more than the list.
Do I have to charge GST/HST on commissions?
Once registered, yes. Registration is mandatory once you pass the small supplier threshold, which most active agents do.
Is a property sale a capital gain or business income?
It depends on intent at purchase, holding period and how often you do it. Being in the industry increases the scrutiny, so the reasoning needs to be documented.
When are instalments due?
Quarterly, in March, June, September and December, once your tax owing passes the threshold in the current and a prior year.
Licensed, certified, and accountable for it.
The bodies that license this practice, and the certifications behind the day-to-day work.
CPA Ontario
The provincial body that regulates Chartered Professional Accountants in Ontario.
EFILE certified
Certified by the Canada Revenue Agency to file returns electronically on behalf of clients.
Intuit ProAdvisor
Intuit certification covering QuickBooks Online setup, reconciliation and reporting.
QuickBooks Payroll
Intuit certification for running payroll, deductions and remittances inside QuickBooks.
In their words.
Aaron has done my personal taxes for six years and he’s the best. My files are sometimes complicated and I was not always the most organized client, yet he handles all of it without ever making me feel bad about the mess. He’s fast, he explains everything in plain English, and he always finds credits I would have missed.Shmuel Neft
Working with Aaron and his team, especially Anna, has been fantastic for both our camp operations and Prime Coat Painters. From complex contractor billings to seasonal accounts and corporate taxes, they handle everything with real attention to detail. If you need a reliable, top-tier accounting team for your business, I can’t recommend Aaron Herman CPA highly enough!Tzadi Zlotnick, Prime Coat Painters Inc.
I use him for personal and business accounting. He is absolutely phenomenal with his work and expertise. Thorough, reliable, dependable, and punctual with due dates. I’ve worked with many accountants previously and Aaron surpassed them all in everything on my list.Elior Zipori, Zipori Landscapes & Design
We have been using Aaron Herman CPA for about four years now and we are very happy with their services. Anna is especially great to work with. She is on the ball, always up to date, and gets back to you right away with any questions or concerns.Reuven Durbach
Very happy with Aaron’s service. He is very knowledgeable and professional. Very patient with all my questions, ready to answer and be with the client within a short period of time. All the accounting service is done in a timely manner.Artem Artemov, Rimland
Aaron is excellent! He responds quickly, explains everything clearly, and makes the whole tax process easy and stress-free. He is very knowledgeable and always helps find the best way to get everything done properly.Mai Edry
Aaron is an amazing accountant! He is very supportive and great at explaining the ins and outs of what was needed when expanding my business. I highly recommend Aaron and his team!Leah Lomiansky, Speech Volumes Therapy
He is knowledgeable, thorough and effective. He is very responsive and takes great care of his clients. I highly recommend him and his services!Rachel Danzinger, Learning Pods
Absolutely love Aaron and Anna. They are fantastic to work with, go above and beyond, and their communication and dedication is unsurpassed.Fat Cat Cookie Co.
Two people. Trusted with your year.
Aaron Herman
CPA, CA · Founder and Managing Partner
Aaron planned and prepared tax in public practice, then led financial reporting inside large Canadian companies. He is the person who answers when you call.
My number one priority is a happy client.
Anna Herman
Director of Finance and Operations
Anna runs the machinery behind the work: cloud accounting, CRA compliance, payroll and client onboarding. If your year-end is uneventful, that is Anna.
Order creates opportunity.
Tell us where your year stands.
Send the form and Aaron will come back to you directly. If it is easier, call. Someone here answers.