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Gondaliya CPA

Corporate Tax Filing Experts

Tax Accountant for Real Estate Syndicators in Ontario and Across Canada

We file the T5013 partnership information return and cut the slips your investors are waiting on, compute each limited partner’s at-risk amount under ITA subsection 96(2.1) before a loss is allocated, and amortize your mortgage broker fees, lender commitment fees and offering costs at 20% a year over five years the way ITA paragraph 20(1)(e) requires instead of writing them off in year one. We capitalize construction-period interest, property tax and insurance to the building under ITA subsection 18(3.1), put every rental building costing $50,000 or more in its own Class 1 pool, and review each fee in your stack — acquisition, asset management, disposition, promote — against the ETA subsection 123(1) definition before anybody charges or does not charge HST. Whether you syndicate multifamily, land development, industrial or self storage, we handle the structure, the slips and the waterfall — with AFFORDABLE flat fees.

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AFFORDABLE Real Estate Syndicator Tax Accountant

A syndicator raises other people’s money into a structure, and the structure is the tax story. You assemble investors into a limited partnership or a corporation, buy or build real property inside it, take an acquisition fee on closing, an asset management fee every year, a disposition fee on the way out and a promote above the preferred return. Every one of those decisions lands somewhere on a return. The partnership itself pays no tax, but it must file a T5013 information return and allocate its income to people who each need a slip before they can file, which turns your year-end into a deadline for dozens of other households. Underneath that sit the rules that catch sponsors most often: the at-risk cap on what a limited partner may deduct, the five-year amortization of financing and issue costs, the capitalization of soft costs while a building is under construction, and the question of whether each fee you charge is an exempt financial service or a taxable management service. At Gondaliya CPA, we specialize in partnership returns, at-risk tracking and the fee stack for syndication sponsors, providing AFFORDABLE flat-fee support that keeps you CRA-compliant and stops you paying more tax than you owe.

As a real estate syndication accountant, we work with multifamily syndicators, land development partnerships, industrial and commercial sponsors, and self storage and build-to-rent groups across Ontario, with year-round support rather than a once-a-year scramble. We tell you what the partnership actually earned, what each partner’s adjusted cost base and at-risk amount are, and where the HST exposure in your fee stack sits.

Let us handle the numbers so you can focus on the deal and the investors.

Gondaliya CPA team - accounting and tax services for real estate syndicators

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Accounting That Understands How a Real Estate Syndication Actually Works

Syndication comes with financial pressures a private landlord never faces. Your year-end is a deadline for everybody who invested, your limited partners cannot deduct a loss past their at-risk amount, the costs of putting the deal together are not deductible when you pay them, and half your fee stack may or may not carry HST. At Gondaliya CPA, we understand that reality and provide practical, structure-focused solutions across Ontario.

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Dozens of Other People’s Returns

The T5013 allocates partnership income to every investor. Until it is filed and the slips are out, nobody in your raise can file their own return.

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The At-Risk Cap

Under ITA subsection 96(2.1) a limited partner’s deductible loss stops at the at-risk amount. Allocate past it and the excess is denied on review.

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Costs You Cannot Expense

Financing and issue costs run at 20% a year over five years under ITA paragraph 20(1)(e). Construction soft costs capitalize under subsection 18(3.1).

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The Fee Stack and HST

An exempt financial service recovers no input tax credits. A taxable management service does. Charging the wrong one costs you either way.

Stay Compliant and Minimize Your Real Estate Syndication Tax

For a syndicator, keeping the structure onside and paying the least legal tax are the same job. We keep every partnership and corporate filing on schedule while claiming every financing, operating and capital dollar the rules allow, so nothing is missed and nothing invites a reassessment of the partnership or of your investors.

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Securities, the LP Declaration and the Build

No regulator licenses syndication itself, but several real authorities attach. The Ontario Securities Commission governs the distribution of units under the Securities Act (Ontario), with the prospectus exemptions in National Instrument 45-106 and the offering memorandum prepared by your securities counsel — that is counsel’s work, not ours, and we never opine on it. Your declaration of limited partnership under the Limited Partnerships Act (Ontario) expires five years after filing and has to be renewed. RECO registration under REBBA attaches where the sponsor also trades in real estate for others, and Tarion enrolment and an HCRA builder licence attach on new residential construction. Add NAIOP Greater Toronto, ULI Toronto, BILD and PCMA dues: every one is a real annual cost that belongs in the ledger.

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CRA Obligations for Real Estate Syndicators

Staying compliant with CRA means more than one return a year. We manage the T5013 partnership information return with slips allocated to every partner, the at-risk amount computed under ITA subsection 96(2.1) before any loss is allocated, financing costs amortized under ITA paragraph 20(1)(e), construction soft costs capitalized under ITA subsection 18(3.1), CCA held back until the building is available for use under ITA subsection 13(26), a separate Class 1 pool for each building over $50,000 under Regulation 1101(1ac), the rental loss restriction in Regulation 1100(11) respected, the general partner corporation’s T2, and GST34 returns on whichever fees are genuinely taxable. These are the areas CRA looks at first on a syndication file.

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Year-End Deliverables for Real Estate Syndicators

At year-end, a syndication needs partnership financial statements with the property carried by separate Class 1 pool, the mortgage and its unamortized financing costs stated separately, a partner-by-partner capital account and adjusted cost base schedule, and the waterfall in the limited partnership agreement actually applied to the distributions made, plus the T5013 and slips and a T2 with GIFI for the general partner corporation. Your lender reads the rent roll, the trailing twelve-month operating statement and the debt service coverage; your investors read the slip. Our team prepares every deliverable on time.

Accounting & Tax Experts for Real Estate Syndicators

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Why Choose Our Accounting Services for Real Estate Syndicators?

1
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Tax Planning — Pools, Soft Costs & Financing

We know the structure: separate Class 1 pools per building, soft costs capitalized under ITA subsection 18(3.1), financing amortized at 20% a year. We protect the $500,000 Small Business Deduction at the corporate level.

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Consulting — Waterfall & Investor Reporting

Our bookkeeping runs the distribution waterfall in your limited partnership agreement, tracks each partner’s capital account and adjusted cost base, and gets slips out ahead of your investors’ own filing deadlines.

3
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CRA Representation — Partnership & At-Risk Audit

When CRA challenges an allocation, an at-risk amount or a financing deduction, we prepare the response and pursue relief on Form RC4288 where a prior error caused the penalties.

4
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Bookkeeping — Lender Package & Exit

We build the rent roll and trailing twelve-month statement your lender underwrites, keep the fee stack reviewed against the ETA, and model the disposition and wind-up years ahead.

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Real Estate Syndication Clients
Includes personal T1 filing for you and your family
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Weekend and evening support until 9 PM
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Just a call away when you need us

Real Estate Syndication Tax and Accounting Services in Ontario

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Corporate and Partnership Tax Filing (T2 and T5013) for Real Estate Syndicators

Professional T5013 and T2 preparation with partner allocations that tie to the statements, at-risk amounts computed, and separate Class 1 pools on every building.

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Bookkeeping & Accounting for Real Estate Syndicators

Partner capital accounts and adjusted cost base tracked monthly, the distribution waterfall applied as written, and financial statements from clean records.

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Payroll Services for Real Estate Syndicators

Asset management and site staff payroll with WSIB coverage, PD7A remittances, T4 and T4A slips filed on time, and the full-time employee count documented.

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GST/HST Filing for Real Estate Syndicators

AFFORDABLE HST filing with every fee in the stack reviewed against the ETA definition, self-assessment on real property handled, and every input tax credit recovered.

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Tax Planning for Real Estate Syndicators

Smart planning on financing cost amortization, construction soft costs, the salary and dividend mix in the general partner corporation, and the exit years ahead.

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Corporate Catch-Up Filing for Real Estate Syndicators

File overdue T5013 and T2 years, issue the back-year slips your investors never received, and get back into CRA compliance with accurate catch-up support.

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CRA Audit Resolution for Real Estate Syndicators

Expert support on allocation, at-risk and financing cost audits, handled with confidence from the first letter to the Notice of Objection.

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CPA Financial Statements (Notice to Reader) for Real Estate Syndicators

CPA-compiled statements your mortgage lender and your limited partners both accept, carrying the property by pool and the capital by partner.

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Incorporation Services for Real Estate Syndicators

Full incorporation of your general partner corporation, the limited partnership declaration, and the ITA subsection 97(2) rollover of property you already own.

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Catch-Up Bookkeeping Services for Real Estate Syndicators

Years of subscriptions, draws, distributions and mortgage activity reconstructed and reconciled, so your partner capital accounts are finally accurate.

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US Corporation & LLC Tax Filing for Real Estate Syndicators

Cross-border filing where investors or sponsors are non-resident or American, covering Part XIII withholding, section 116 clearance and T1135 reporting.

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Voluntary Disclosure Program for Real Estate Syndicators

Come forward on unfiled T5013 returns, losses allocated past the at-risk amount or HST never charged on taxable fees, cancelling penalties through a Voluntary Disclosures Program application.

Accounting & Tax Services Tailored for Real Estate Syndicators

Real, practitioner-level CPA expertise for multifamily syndicators, land development partnerships, industrial and commercial sponsors, and self storage and build-to-rent groups across Ontario — built for a business where the structure is the tax story.

  • We prepare the T5013 partnership information return and allocate rental income, interest and capital gains to every partner on slips that tie line by line to the partnership’s own financial statements, so CRA’s matching against your investors’ returns reconciles.
  • We file the return by March 31 where every member is an individual and five months after the fiscal period end where every member is a corporation, avoiding the ITA subsection 162(7.1) penalty of $25 a day to a $2,500 maximum.
  • We compute each limited partner’s at-risk amount under ITA subsection 96(2.1) before any loss is allocated, because a loss pushed past that ceiling is denied on review and becomes a limited partnership loss carried forward instead.
  • We claim capital cost allowance with each rental building costing $50,000 or more in its own separate Class 1 pool under Regulation 1101(1ac), appliances and common-area furniture in Class 8, and the rental loss restriction in Regulation 1100(11) respected.
  • We file the general partner corporation’s T2 with GIFI on Schedule 100 and Schedule 125, reporting the management and acquisition fee income it earned separately from its share of the partnership allocation so the two are never conflated.
  • We keep the partnership’s books in QuickBooks Online or Xero against Yardi Voyager, so the rent roll, the operating statement and the general ledger agree before anybody prepares a slip or a lender package.
  • We track every partner’s capital account and adjusted cost base month by month, adding allocated income and contributions and subtracting losses and distributions, because nobody can compute a gain on a unit sale without that schedule.
  • We run the distribution waterfall exactly as your limited partnership agreement writes it, posting the preferred return to limited partners and the promote to the general partner as separate ledger entries rather than one undifferentiated cash transfer.
  • We reconcile your Juniper Square or AppFolio Investment Manager investor records to the ledger every month, so what an investor sees in the portal and what eventually lands on their slip are the same number.
  • We capture mortgage statements, property tax bills, appraisal and environmental invoices and construction draws through Dext, keeping the six years of records ITA section 230 requires and making sure no recoverable input tax credit is lost.
  • We set up payroll for the asset management and property management staff the general partner employs, withholding income tax, CPP and EI and remitting on the PD7A by the 15th of the following month.
  • We count the full-time employees the property business actually has, because ITA subsection 125(7) treats a business whose principal purpose is earning property income as a specified investment business unless more than five full-time employees are engaged.
  • We file T4A slips on the leasing agents, construction consultants and bookkeepers paid as contractors, so the fees the partnership deducted are reported the way CRA expects rather than sitting in an unsupported professional services total.
  • We register WSIB coverage before the first on-site superintendent or maintenance worker is hired, because a building under construction or lease-up is exactly the place an unregistered employer cannot afford an injury claim to arrive.
  • We file your T4 slips and T4 Summary by the last day of February, reconcile them to the PD7A remittances made, and monitor Ontario payroll against the $1,000,000 Employer Health Tax exemption.
  • We review each fee in your stack against the ETA subsection 123(1) definition of a financial service before anybody charges tax, because an exempt supply recovers no input tax credits while a taxable management service recovers them in full.
  • Charging 13% on a fee that was exempt over-bills your own investors, and charging nothing on a fee that was taxable leaves you remitting the tax out of your margin years later with interest running.
  • On a taxable purchase of real property, a registrant purchaser self-assesses under ETA subsection 221(2) and reports the tax on its own return instead of handing cash to the vendor at closing, which keeps a large amount of working capital in the deal.
  • Within a qualifying closely related group we file the section 156 election on Form RC4616 to take intercompany charges to nil consideration, and we review the joint venture election on Form GST21 where the structure is a co-ownership.
  • Where your fees are genuinely taxable we recover the input tax credits on legal, accounting, appraisal, environmental and portal costs, which on a raise carrying heavy professional fees is a real recovery every filing period.
  • We amortize mortgage broker fees, lender commitment and standby fees, loan legal costs and offering expenses at 20% a year over five years under ITA paragraph 20(1)(e), rather than claiming them all in the year the deal closed.
  • We capitalize construction-period interest, property tax and insurance to the building under ITA subsection 18(3.1) and hold capital cost allowance back until the building is available for use under ITA subsection 13(26), which is where reassessments start.
  • We document intention at acquisition, holding period, financing and your conduct on prior projects, because whether a disposition is business income under ITA section 9 or a capital gain under section 38 is a question of fact decided on those factors.
  • We set the salary-and-dividend mix in the general partner corporation so combined tax sits near the 12.2% Ontario small-business rate rather than 53.53% personally, and watch adjusted aggregate investment income against the $50,000 grind in ITA subsection 125(5.1).
  • When the general partner corporation realizes a capital gain on a disposition, we file the Form T2054 capital dividend election before the dividend becomes payable, so the non-taxable half in the capital dividend account reaches you tax-free.
  • We reconstruct the partnership’s rental income, fee income and capital transactions from bank records, mortgage statements and the Yardi Voyager ledger across your unfiled years, rebuilding the six years of records ITA section 230 requires.
  • Late filing costs 5% of the balance owing plus 1% per month up to twelve months, so we file the oldest unfiled T2 for the general partner corporation first to stop the penalty compounding and limit arrears interest.
  • We file the missing T5013 returns and issue the back-year slips your investors never received, because the $25 a day partnership penalty runs to $2,500 a return and your limited partners cannot correct their own filings without them.
  • We rebuild the capital cost pools across the missing years, splitting each building over $50,000 into its own Class 1 and moving appliances and site equipment into Class 8, recovering deduction that was understated in every year it ran.
  • We file a Voluntary Disclosures Program application on Form RC199 before CRA contacts you, because a disclosure accepted under the general program cancels penalties in full and gives roughly 50% interest relief on the older years.
  • When CRA challenges how partnership income was allocated, we produce the limited partnership agreement, the capital accounts and the waterfall calculation behind every slip issued, because an allocation nobody can trace is where a partnership audit begins.
  • When CRA denies a limited partner’s loss, we rebuild the at-risk amount under ITA subsection 96(2.1) from contributions, allocated income and any guarantee or debt owing back to the partnership, and show what was properly deductible.
  • When a reviewer tests a first-year financing deduction, we produce the ITA paragraph 20(1)(e) schedule showing the broker fee, commitment fee and loan legal costs written down at 20% a year with the unamortized balance carried forward.
  • When CRA tests a construction year, we show which soft costs were capitalized under ITA subsection 18(3.1) and the date the building became available for use, so a denied CCA claim does not cascade into every later year.
  • We file the Notice of Objection within 90 days of a reassessment and pursue taxpayer relief on Form RC4288, cancelling penalties and interest that can top $15,000 where a prior accountant’s error caused them, protecting your Tax Court rights.
  • We prepare the CSRS 4200 compilation engagement financial statements a lender requires across two fiscal years for a construction takeout, a refinance at stabilization or a CMHC mortgage loan insurance application on an apartment asset.
  • Your compiled statement of financial position carries the property by separate Class 1 pool, the mortgage with its unamortized financing costs stated apart from principal, and the partners’ capital split between the general and limited partners.
  • We present the rent roll and the trailing twelve-month operating statement the lender actually underwrites, with the debt service coverage calculation shown, because a syndicated asset is priced on net operating income rather than on the sponsor’s projections.
  • We build the statement of operations with rental revenue, fee income and the promote classified consistently across two years and tied to the T5013 filed, so the statements your limited partnership agreement obliges you to circulate hold up.
  • We deliver the compiled statements within 30 days of receiving your records and the year’s figures, because a refinance approval ahead of a mortgage maturity does not wait for a slow accountant and neither do your investors.
  • We incorporate your general partner corporation under the Ontario Business Corporations Act so the entity carrying unlimited partnership liability is a company rather than you personally, and set its share structure before the first investor subscribes.
  • We file the declaration of limited partnership under the Limited Partnerships Act (Ontario) and diarize its renewal, because the declaration expires five years after filing and a lapsed registration is discovered at the worst possible moment in a financing.
  • We complete the ITA subsection 97(2) rollover on Form T2059 where you contribute land or a building you already own into the partnership, deferring the capital gain an outright sale into the structure would otherwise trigger.
  • We open the partnership’s Business Number with an RZ information return account for T5013 slips and an RT account where any supply is taxable, within the first 30 days rather than in the week the return is due.
  • We set the chart of accounts with partner capital accounts, the waterfall tiers, separate Class 1 pools and unamortized financing costs built in from the first closing, so the records accumulate correctly from day one.
  • We rebuild months or years of neglected partnership books from bank records, mortgage statements, property manager reports and subscription documents, so a sponsor who raised capital faster than it built a back office gets a clean ledger.
  • We reconstruct every partner’s capital account and adjusted cost base from the original subscription amounts forward, which is almost always missing when we inherit a syndication file and is the first thing an exit calculation needs.
  • We separate what was capital from what was expense across the backlog, moving land transfer tax, title insurance, appraisal and Phase I environmental costs onto the property and financing costs into the ITA paragraph 20(1)(e) five-year schedule.
  • We recover the input tax credits buried in unentered legal, accounting, consulting and portal invoices on the taxable side of your fee stack, which on a raise with heavy professional costs is a meaningful recovery.
  • We separate investor distributions from allocated partnership income across the caught-up months, because cash paid out is not the same number that goes on a slip and treating them as one misstates every partner’s basis.
  • Where a non-resident invests in your partnership, we handle the Part XIII withholding on amounts paid or credited out of Canada and the NR4 reporting that follows, so nothing is missed at 25% or the treaty rate.
  • When a non-resident partner disposes of units in a partnership holding Canadian real property, we obtain the ITA section 116 clearance certificate, because without it the purchaser withholds and the closing stalls on the day it matters.
  • We file the ITA section 216 election for non-resident investors receiving Canadian rental income, so they are taxed on net rent after capital cost allowance and expenses rather than on the gross amount withheld at source.
  • We file Form T1135 where the sponsor or the corporation holds foreign property costing more than $100,000, avoiding a penalty regime CRA applies whether or not any tax was actually owing on the holding itself.
  • Where a US citizen is a limited partner or a shareholder in the general partner, we coordinate the Canadian and US returns so foreign tax credits actually land and the same income is not taxed twice.
  • We bring a partnership forward where T5013 returns were never filed at all, because the $25 a day penalty to a $2,500 maximum repeats for every unfiled year and your investors filed on numbers nobody reported.
  • We disclose losses allocated to limited partners past their at-risk amount under ITA subsection 96(2.1), because a denied loss reaches through the partnership into every investor’s personal return and the penalty is the part a disclosure removes.
  • We correct HST never charged on management fees that were taxable all along, which is a quiet and cumulative error on a sponsor running several partnerships and one CRA finds on the first GST34 review.
  • We file your VDP submission on Form RC199 with a full reconstruction from bank records, mortgage statements and the investor portal, so a sponsor who outgrew its bookkeeping is not left facing an arbitrary assessment.
  • We confirm your disclosure is genuinely voluntary before CRA contacts you — the single condition that makes it valid — and secure the roughly 50% interest relief on the older years, turning a prosecution risk into a managed correction.

Real Estate Syndication Structure & Tax Check

Six quick questions on your T5013 filing, your at-risk tracking, your financing costs, your construction soft costs, your fee stack and whether the general partner is incorporated. No fee shown.

1. Is a T5013 partnership information return filed with slips issued to every investor?

2. Is each limited partner’s at-risk amount computed before a loss is allocated?

3. Are broker fees and loan legal costs amortized over five years rather than expensed?

4. Were construction-period interest, property tax and insurance capitalized to the building?

5. Has every fee in your stack been tested against the ETA financial service definition?

6. Is your general partner incorporated under the Ontario Business Corporations Act?

Free CPA Consultation for Real Estate Syndicators

Case Studies: Real Estate Syndication Accounting & Tax

Toronto Multifamily Syndication — Financing Costs Claimed in One Year

The problem: A Toronto sponsor closed a 48-unit acquisition through a limited partnership and its prior accountant deducted $186,000 of mortgage broker fees, lender commitment and standby fees and loan legal costs in full in the closing year. That is not what ITA paragraph 20(1)(e) says. Those costs come off at 20% a year over five years, and the deduction as filed produced a first-year partnership loss that was then allocated out to every limited partner on a slip.

What we did: We rebuilt the financing cost schedule from the mortgage commitment and the lawyer’s statement of adjustments, restated the partnership’s income for the open years, amended the allocations and reissued the affected slips before CRA reached the file.

The result:

  • $186,000 of financing costs moved onto a five-year schedule
  • $37,200 claimed in each of five years instead of one
  • Amended slips issued before a reassessment landed on investors

Mississauga Land Development LP — Soft Costs Deducted During the Build

The problem: A Mississauga land development partnership deducted $412,000 of construction-period interest, property tax and insurance while the building was going up, and then claimed capital cost allowance on the building in the same year. ITA subsection 18(3.1) requires those soft costs to be capitalized to the building during construction, and ITA subsection 13(26) allows no capital cost allowance until the property is available for use. Both errors were running across three open years.

What we did: We reclassified the soft costs into the capital cost of the building, fixed the available-for-use date from the occupancy records, restated capital cost allowance from that date forward, and set the construction draw coding in Sage 300 Construction and Real Estate so the next project codes correctly at source.

The result:

  • $412,000 of soft costs capitalized to the building
  • Capital cost allowance restarted from the available-for-use date
  • Three open years corrected before CRA opened a review

Ottawa Self Storage Partnership — 34 Investors Waiting on Slips

The problem: An Ottawa self storage syndication had 34 limited partners and no reliable investor ledger. Subscriptions, distributions and capital accounts lived in a spreadsheet that nobody had reconciled to the bank in two years. T5013 slips went out late every spring, which meant 34 households could not file, and the sponsor spent the whole of March answering the same email about the same missing number.

What we did: We rebuilt the investor records in Juniper Square, reconciled every subscription and distribution to Xero, restated each partner’s capital account and adjusted cost base from the original closing, and moved the T5013 preparation onto a fixed calendar that starts in January.

The result:

  • 34 partner capital accounts rebuilt and reconciled
  • T5013 slips issued 41 days earlier than the prior year
  • 120 hours a year of investor query handling removed

Our Simple Process

How We Work With Real Estate Syndicators

Know Exact Fees within 2 Minutes NOW

Our clear, efficient process ensures every step is transparent, building trust and long-term client relationships.

Here’s a simplified process approach:
Step 1

Kickoff (Document Request)

Collect the limited partnership agreement and declaration, the offering memorandum, the subscription register, prior T5013 and T2 returns, mortgage commitments and statements of adjustments, construction draws, rent rolls, and bank statements.

Step 2

First 30 Days (Cleanup & Setup)

Set up QuickBooks Online or Xero against Yardi Voyager and Juniper Square, rebuild the partner capital accounts and adjusted cost base, split the Class 1 pools per building, and schedule the financing costs.

Step 3

Monthly Close

Rent roll to ledger reconciliation, distributions posted through the waterfall tiers, construction draws coded between capital and soft costs, and GST34 on whichever fees are genuinely taxable.

Step 4

Quarterly Planning Review

At-risk amounts by partner, the salary and dividend mix in the general partner corporation, refinance and disposition timing, the fee stack reviewed against the ETA, and cash flow against debt service coverage.

Step 5

Year-End Close & T5013 Filing

Trial balance, partnership financial statements with the property by pool and capital by partner, T5013 return and slips to every investor, the general partner T2 with GIFI, and CRA preparation.

Get Your Real Estate Syndication Taxes Done Right Today

Transparent Pricing for Real Estate Syndicators

Affordable Pricing for Real Estate Syndicators

Know Exact Fees within 2 Minutes NOW

We believe in clear, upfront pricing so you know exactly what to expect. All fees include HST.

  • Tax Preparation (Corporation) — From $400
  • Tax Return Filing (Corporation) — From $400
  • Tax Compliance Audit — FREE CRA audit support for our clients
  • Tax Strategy — FREE for our clients
  • Accounting Base Plan — From $100 per month
  • Bookkeeping Management — Free for our Accounting clients
  • Financial Reporting — Free for our Accounting clients
  • Business Formation — Flat $35
  • Incorporation Process — Flat $35
  • Entity Setup Assistance — Flat $35
  • Full-Service Payroll — From $125 per month

Payment is by Interac e-Transfer to info@gondaliyacpa.ca only. Security question: Not Applicable, as auto-deposit is enabled.

Meet Your Lead Real Estate Syndication Accountant

Meet your lead real estate syndication accountant. As your partnership and corporate tax adviser, you deal with the same two people every year.

Sharad Gondaliya CPA

Sharad Gondaliya, CPA

Principal

Bio

647-212-9559
sharad@gondaliyacpa.ca

Vandana Goel CPA

Vandana Goel, CPA

Accounting Specialist

Bio

647-250-0242
vandana@gondaliyacpa.ca

What Our Clients Say

1300+ five-star reviews from real estate, investment and partnership business owners across Ontario and Canada.

Serving Real Estate Syndicators Across Ontario

Our CPA team provides specialized accounting and tax solutions for real estate syndication sponsors and limited partnerships throughout Ontario. We understand how a waterfall is written, why a limited partner’s loss stops at the at-risk amount, what happens to financing costs in the year a deal closes, and what CRA looks at first when it opens a partnership file.

Toronto (ON)

55 Queen St E Ste 1205, Toronto, ON M5C 1R6, Canada

+1 (647) 212-9559

9:00 AM – 8:30 PM (Mon – Sun)

Mississauga (ON)

2100 Camilla Rd #716, Mississauga, ON L5A 2J8

+1 (647) 212-9559

9:00 AM – 8:30 PM (Mon – Sun)

Brampton (ON)

4 Starhill Crescent, Brampton, ON L6R 2P9, Canada

+1 (647) 212-9559

9:00 AM – 8:30 PM (Mon – Sun)

Scarborough (ON)

24 Clementine Square, Scarborough, ON M1G 2V7, Canada

+1 (647) 212-9559

9:00 AM – 8:30 PM (Mon – Sun)

Vaughan (ON)

19 Cabinet Crescent, Woodbridge, ON L4L 6H9, Canada

+1 (647) 212-9559

9:00 AM – 8:30 PM (Mon – Sun)

Oshawa (ON)

210 Durham St, Oshawa, ON L1J 5R3, Canada

+1 (647) 212-9559

9:00 AM – 8:30 PM (Mon – Sun)

Ottawa (ON)

2090 Neepawa Ave a314, Ottawa, ON K2A 3L6, Canada

+1 (647) 212-9559

9:00 AM – 8:30 PM (Mon – Sun)

Etobicoke (ON)

60 Stevenson Rd #1601, Etobicoke, ON M9V 2B4, Canada

+1 (647) 212-9559

9:00 AM – 8:30 PM (Mon – Sun)

Hamilton (ON)

70 Starling Dr, Hamilton, ON L9A 0C5, Canada

+1 (647) 212-9559

9:00 AM – 8:30 PM (Mon – Sun)

Guelph (ON)

1155 Gordon St, Guelph, ON N1L 1S8, Canada

+1 (647) 212-9559

9:00 AM – 8:30 PM (Mon – Sun)

Windsor (ON)

4387 Guppy Ct, Windsor, ON N9G 2N8, Canada

+1 (647) 212-9559

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North York (ON)

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Real Estate Syndication Accounting & Tax FAQs

Should I incorporate my real estate syndication?
Almost every Ontario syndication already involves a corporation, because the general partner of a limited partnership carries unlimited liability for the partnership’s obligations and no sensible sponsor carries that personally. So the first incorporation is an Ontario Business Corporations Act company that acts as general partner and holds nothing else. The second question is what the corporation does with the fee income it earns, and there the benefit is roughly a 12.2% Ontario combined rate on the first $500,000 of active income against a personal rate reaching 53.53%, which only helps if you earn more than you withdraw. Note that a business whose principal purpose is earning income from property is a specified investment business under ITA subsection 125(7) unless more than five full-time employees are engaged, so whether the small business rate is available to a given structure is a question we work through rather than assume. The compliance obligation that follows is real: a T2 every year, GIFI schedules, and a partnership that must file its own T5013 regardless. At Gondaliya CPA we set the general partner corporation, the limited partnership declaration and the accounting structure together, so the entity, the agreement and the ledger agree from the first closing.
Do I have to file a T5013 for my limited partnership?
A partnership pays no tax of its own, but it still has to report. CRA requires a T5013 partnership information return where the partnership meets the filing thresholds or is a tax shelter, and in practice a syndicated limited partnership with outside investors files. The return reports the partnership’s income and then allocates it to each partner, who picks up their share on their own return whether or not any cash was distributed. That last point surprises sponsors and investors alike: an allocation is taxable even in a year the partnership retained everything for a capital reserve. Missing the filing carries the ITA subsection 162(7.1) penalty of $25 a day to a $2,500 maximum, per return, per year. We file the return and issue the slips.
When are T5013 slips due to investors?
The return and the slips are due by March 31 following the calendar year where every member of the partnership is an individual, and within five months of the fiscal period end where every member is a corporation. Where the membership is mixed, which describes most syndications, the earlier of those two dates applies. The practical deadline is usually earlier than the legal one, because your limited partnership agreement often commits you to a delivery date and because thirty investors cannot file their own returns until your slip arrives. That is the part sponsors underestimate: your year-end is a deadline for dozens of other households. We start the partnership close in January rather than in March.
What is the at-risk amount for a limited partner?
It is the ceiling on what a limited partner can actually deduct. Under ITA subsection 96(2.1) a limited partner’s share of a partnership loss is deductible only up to their at-risk amount, which is broadly the adjusted cost base of the interest, adjusted for allocated income and reduced by amounts owing to the partnership and by any guarantee or protection against loss. Anything above that ceiling is not lost, but it is not deductible now either: it becomes a limited partnership loss carried forward indefinitely against future income from that same partnership. The failure we see most often is that nobody computed the amount at all, so losses were allocated on the agreement’s percentages and deducted in full. When CRA catches that, the denial lands on every investor, not on the sponsor. We compute it partner by partner before anything is allocated.
Can I deduct my mortgage broker fee in one year?
No. Under ITA paragraph 20(1)(e) the costs of borrowing money or issuing units come off at 20% a year over five years, pro-rated in a short fiscal period. That covers the mortgage broker fee, the lender’s commitment and standby fees, the legal costs of the loan and the costs of issuing the partnership’s own units. Expensing them in the closing year is the single most common error we find on a syndication file, and it is an expensive one, because it usually produces a first-year loss that was then allocated out to every limited partner on a slip. Correcting it after the fact means restating the partnership, amending allocations and reissuing slips. Getting it right at the first closing costs nothing.
How do I treat soft costs during construction?
They are capitalized, not deducted. ITA subsection 18(3.1) denies a current deduction for interest, property tax, insurance and similar costs that relate to the period of construction, renovation or alteration of a building, and requires them to be added to the capital cost of the building instead. The second half of the same problem is capital cost allowance: under ITA subsection 13(26) you claim none until the building is available for use. Together those two rules mean a development year often produces far less deduction than the cash flow suggests, and a partnership that deducted the soft costs and claimed capital cost allowance anyway has two errors running in the same year across every open return. We fix the coding at the draw, in Sage 300 Construction and Real Estate or Procore, so the classification happens once.
Do I charge HST on an asset management fee?
It depends on what the fee is actually paid for, and it is not a question to answer by looking at the invoice heading. A financial service as defined in ETA subsection 123(1) is exempt under Part VII of Schedule V, which means no tax is charged and no input tax credits are recoverable on the costs of supplying it. A management or administrative service is taxable at 13% in Ontario with full credits. Acquisition fees, asset management fees, disposition fees and refinancing fees all sit somewhere on that line depending on what is being supplied, and we review each one against the definition rather than assuming. The cost of assuming is symmetrical: charge tax on an exempt fee and you over-bill your own investors, charge nothing on a taxable fee and you remit it out of your margin years later with interest.
How is the promote taxed?
The promote, or carried interest, is the sponsor’s share of profit above the preferred return hurdle, and its tax treatment follows the document rather than the label. Whether it is a partnership allocation flowing through with the character it had in the partnership, a fee for services, or a return on the general partner’s own invested capital depends on how the limited partnership agreement is written and what the general partner actually did to earn it. Those three answers carry very different tax results, so this is one we read the agreement for and review with your counsel rather than assert. What we can do in every case is make sure the waterfall in the agreement is what the ledger actually posts, which is where most of the confusion starts.
What CCA class is an apartment building and why can capital cost allowance not create a rental loss?
A residential rental building is Class 1 at 4%, and an eligible non-residential building can reach 6% with the additional allowance. Regulation 1101(1ac) then requires each rental building costing $50,000 or more to sit in its own separate Class 1 pool, which matters enormously on an exit, because recapture on the building you sold cannot be buried in the pool balance of the one you kept. Appliances, common-area furniture and site equipment go to Class 8 at 20%, leasehold improvements to Class 13, software to Class 12 and asset management workstations to Class 50. The restriction is Regulation 1100(11): capital cost allowance on rental property cannot create or increase a loss from rental property. So the deduction is capped at the net rental income before capital cost allowance, and any unused room stays in the pool for later years rather than sheltering your other income.
Is my gain on the sale capital or income?
It is a question of fact, and nobody honest will answer it from the deal summary alone. Business income under ITA section 9 and a capital gain under section 38 are taxed very differently, and the line turns on your intention at acquisition, how the project was financed, how long it was held, what the offering documents told investors the plan was, and your own conduct on prior projects. A build that was always going to be sold on completion raises the question squarely, and a sponsor with a history of building and selling raises it again. We document the factors contemporaneously rather than reconstructing them under audit, and we tell you where the risk sits before you sign, but we do not assert a conclusion that CRA gets to test on the facts.
What happens when a limited partner’s adjusted cost base goes negative?
A deemed capital gain. The adjusted cost base of a partnership interest rises with contributions and allocated income and falls with allocated losses and distributions, and on a cash-flowing syndication that pays out more than it allocates, the base grinds down year after year. Under ITA subsection 40(3.1) a limited partner whose adjusted cost base is negative at the end of the partnership’s fiscal period is deemed to realize a capital gain equal to that negative amount, and the base resets to nil. Investors are rarely told this is coming, and it lands in a year with no sale and no obvious trigger. The only defence is tracking, partner by partner, every year. That schedule is also the first thing anybody needs when a unit is sold or the partnership winds up.
What can a real estate syndicator write off?
At the partnership level: property tax, insurance, utilities, property management fees, repairs and maintenance, on-site payroll and WSIB, leasing costs, professional fees for the annual statements and the T5013, investor reporting and portal subscriptions such as Juniper Square or AppFolio Investment Manager, and mortgage interest deductible under ITA paragraph 20(1)(c). At the general partner level: asset management salaries, NAIOP Greater Toronto, ULI Toronto, BILD and PCMA dues, office costs, and the software running the books. Borrowing and unit issue costs are not expensed, they run at 20% a year for five years under ITA paragraph 20(1)(e). On capital, the building goes to its own Class 1, appliances and site equipment to Class 8, leaseholds to Class 13 and workstations to Class 50, all on Schedule 8. Land transfer tax, title insurance, appraisal and Phase I environmental costs are part of the cost of the property rather than a current deduction.
How do I structure the exit on a syndicated property?
There are two exits and they do not behave the same way. A sale of the property inside the partnership triggers recapture under ITA subsection 13(1) on each separate Class 1 pool plus the gain on the land and building, all of it allocated out to partners on a final T5013, after which the partnership winds up under ITA section 98. A sale of units by an individual limited partner is a disposition of capital property whose adjusted cost base has been reduced by years of losses and distributions, with the ITA subsection 40(3.1) deemed gain waiting where that base went negative. One thing worth saying plainly: the $1.25M Lifetime Capital Gains Exemption under ITA 110.6 attaches to qualified small business corporation shares, not to an interest in a rental real estate limited partnership, so the planning runs through the structure rather than through the exemption. Where a non-resident investor sells, the ITA section 116 clearance certificate governs the closing, and we start that well before the closing date.

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Real Estate Syndication Accounting & Tax Done Right.

T5013 partnership returns with slips out ahead of your investors’ deadlines, each limited partner’s at-risk amount computed under ITA subsection 96(2.1) before a loss is allocated, financing and issue costs amortized at 20% a year over five years under ITA paragraph 20(1)(e) instead of expensed at closing, construction soft costs capitalized under ITA subsection 18(3.1), a separate Class 1 pool for every building over $50,000, and every fee in your stack reviewed against the ETA subsection 123(1) definition before anybody charges HST. AFFORDABLE flat fees, no hourly billing. Licensed CPA Ontario. 1300+ five-star reviews. 30-Day Money-Back Guarantee.



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