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Gondaliya CPA

Corporate Tax Filing Experts

Tax Accountant for Commercial Landlords in Ontario and Across Canada

We register and file the HST on your commercial rent, claim your input tax credits, put your building in the right CCA class at the enhanced rate, reconcile your triple-net recoveries, and plan the structure, financing and eventual sale of your commercial property. Whether you own an office building, a retail plaza, an industrial warehouse or a mixed-use property, we handle the corporate books, the HST and the CAM reconciliations, protect your small business deduction from the specified-investment-business trap, and plan the CCA, land allocation and eventual sale of your commercial real estate — with AFFORDABLE flat fees.

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AFFORDABLE Commercial Landlord Tax Accountant

A commercial landlord plays by different tax rules than a residential one, and getting them wrong is expensive. Your commercial rent is a taxable supply, so you charge and remit 13% HST unlike an exempt residential landlord; your eligible non-residential building can be written off at an enhanced 6% rate that most owners never elect; and capital cost allowance can never create or increase a rental loss. That is why you need a commercial landlords accountant in Ontario who knows the file. At Gondaliya CPA, we specialize in HST and input tax credit recovery and corporate tax planning for commercial landlords, registering and filing your HST, recovering your ITCs, putting your building in the right CCA class at the enhanced rate, and reconciling your triple-net recoveries — AFFORDABLE flat-fee support that keeps you CRA-compliant and stops you paying more tax than you owe.

As a commercial real estate accountant, we work with office building landlords, retail plaza and shopping centre owners, industrial and warehouse landlords, and mixed-use property landlords across Ontario, with year-round support rather than a once-a-year scramble. We tell you plainly what you can deduct, what you cannot, and where the real profit sits across your base rent, percentage rent and CAM and TMI recoveries.

Let us handle the numbers so you can focus on the work that actually pays you.

Gondaliya CPA team - accounting and tax services for commercial landlords

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Accounting That Understands How Commercial Property Actually Works

Owning commercial real estate comes with a tax reality residential landlords never face. Your rent is taxable, so you charge and recover HST; your building can be written off at an enhanced rate most owners miss; your triple-net recoveries must be reconciled to actual costs; and whether CRA treats your corporation as active or a specified investment business decides your rate. At Gondaliya CPA, we understand the financial reality of a commercial landlord and provide practical, property-focused solutions across the GTA and all of Ontario.

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HST on Commercial Rent

Commercial rent is taxable at 13%, so you charge HST, claim input tax credits, and can recover the HST you paid to buy the building.

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Building Depreciation

An eligible non-residential building can be written off at an enhanced 6% rate, but only with a separate-class election most landlords miss.

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Triple-Net Recoveries

Common-area-maintenance, tax and insurance recoveries must be reconciled to actual costs or you over- or under-bill tenants.

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Active vs Investment Income

Held in a corporation with few employees, your rental income can lose the small business deduction and trigger refundable tax.

Stay Compliant and Minimize Your Commercial Landlord Tax

For a commercial landlord, staying onside with CRA and paying the least legal tax are the same job. We keep every filing on schedule while claiming every CCA class, input tax credit and operating cost the T2 allows, so nothing is missed and nothing invites a reassessment.

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HST & Property Obligations

Because commercial rent is a taxable supply, you register for HST, charge 13% on your base rent and recoveries, and self-assess the HST when you buy the real property as a registrant. The upside is that you claim input tax credits on your operating costs and recover the HST paid on acquisition or construction, unlike an exempt residential landlord. We register the accounts, file every GST/HST return on schedule, and make the section 167 election on a going-concern purchase, so your commercial property never carries HST it should not.

CRA Obligations for Commercial Landlords

Staying compliant with CRA means more than one return a year. We manage your T2 or T776, the rental-loss restriction under Regulation 1100(11) that stops CCA from creating a loss, and the active-versus-specified-investment-business characterization under section 125(7) that decides your rate. By monitoring the areas CRA reviews most often on property-income files, we reduce your audit exposure and keep your commercial landlord corporation financially sound.

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Year-End Deliverables for Commercial Landlords

At year-end, a commercial landlord needs a proper trial balance, financial statements that carry a correct land-and-building split and a reconciled CAM and TMI recovery, and a T2 with GIFI on Schedule 100 that ties to your HST returns. Where a lender is involved in an acquisition or refinancing, you also need CPA-compiled financial statements for financing. Our team prepares every deliverable on time and in compliance, so your file is audit-ready and financing-ready.

Accounting & Tax Experts for Commercial Landlords

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Why Choose Our Accounting Services for Commercial Landlords?

1
🎯

Tax Planning — Real Estate & Structure Expertise

We know the file: the enhanced 6% building CCA through a separate-class election, the section 125(7) specified-investment-business test, and the section 85 rollover into a holdco. We protect the $500,000 Small Business Deduction and set up the $1.25M LCGE for an eventual sale.

2
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Consulting — Lease & Recovery Bookkeeping

Our bookkeeping reconciles your CAM and TMI recoveries to actual operating costs, so you neither over- nor under-bill tenants. We track base rent, percentage rent, mortgage interest and property tax, and tie your 13% HST returns to reported income.

3
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CRA Representation — Property Audit & HST

When CRA questions a CCA-created rental loss, the HST you charged on rent, or your land-and-building allocation, we prepare the response, defend the Regulation 1100(11) and section 125(7) positions, and pursue relief on Form RC4288 where penalties came from a prior error.

4
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Bookkeeping — Acquisition, Financing & Sale

We handle the HST self-assessment on a purchase, prepare the CPA financial statements a lender requires for refinancing, and plan the disposition so the capital gain on appreciated land and the recapture on the building are handled ahead of time.

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Commercial Landlord Tax and Accounting Services in Ontario

📄

Corporate Tax Filing for Commercial Landlords

Professional T2 preparation with Schedule 8 CCA on your building at the enhanced 6% rate, correct land allocation, CAM income and GIFI, and CRA compliance on every line.

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Accounting & Bookkeeping for Commercial Landlords

Rent-and-recovery bookkeeping with financial statements, CAM and TMI reconciliation, clean records, and monthly reporting built for a commercial landlord.

📈

Corporate Tax Planning for Commercial Landlords

Smart tax planning to make the separate-class election, protect the Small Business Deduction from the specified-investment-business trap, and plan the section 85 rollover and sale.

Catch-Up Corporate Tax Filing for Commercial Landlords

File overdue T2 and HST years, rebuild missing rent rolls and recoveries, and get back into CRA compliance with accurate catch-up support.

🧾

GST/HST Filing for Commercial Landlords

AFFORDABLE HST filing at 13% on rent and recoveries with full input tax credits on operating costs, matched to your T2 to avoid CRA penalties.

🧹

Corporate Tax Cleanup for Commercial Landlords

Correct the building CCA class to the enhanced rate, apply the rental-loss restriction, reallocate land and building, and bring every filing up to date.

🛡

CRA Audit Resolution Services for Commercial Landlords

Expert support for CCA-created rental-loss audits, HST-on-rent reviews, and land-allocation disputes, with confidence.

📊

CPA Compilation Report (Notice to Reader) for Commercial Landlords

CPA-compiled financial statements that banks and lenders accept for mortgage refinancing and acquisition financing.

🏢

Incorporation Services for Commercial Landlords

Full incorporation including NUANS, articles, share structure, and the section 85 rollover of the building from personal ownership.

📒

Catch-Up Bookkeeping Services for Commercial Landlords

Rent rolls and tenant ledgers rebuilt for the unposted years, CAM and TMI recovery reconciliations redone, capital-versus-repair splits corrected, and the missed HST returns on your commercial rent filed.

🌐

US Corporation & LLC Tax Filing for Commercial Landlords

Form 1120, treaty-based 1120-F and Form 5472 filings where a US-situs property or a US-resident owner sits in your structure, coordinated with the Canadian return on the same rental income.

📜

Voluntary Disclosure Program for Commercial Landlords

Form RC199 disclosures for unreported rent and recoveries and unremitted HST on commercial rent, tested against the five acceptance conditions before anything reaches CRA.

Accounting & Tax Services Tailored for Commercial Landlords

Real, practitioner-level CPA expertise for office building landlords, retail plaza and shopping centre owners, industrial and warehouse landlords, and mixed-use property landlords across Ontario — built for how a commercial real estate portfolio actually runs.

  • We prepare your T2 on Schedule 8 with the office building in a separate Class 1 pool at the enhanced 6% rate, not the 4% base, because the separate-class election most landlords never file is worth thousands in deductions CRA otherwise leaves on the table.
  • We split the purchase price between commercial land cost and building on Schedule 8, because land is never depreciable and over-allocating to it strips your capital cost allowance, letting CRA reassess years of CCA and add the 5% plus 1% penalty on the balance owing.
  • We report your CAM recovery and TMI recovery as income on the T2, reconciled to actual operating costs and the 13% HST charged on them, so a retail plaza landlord neither overstates recoverable income nor hands CRA a common-area-maintenance reconciliation adjustment.
  • We map your base rent income, percentage rent and operating cost recovery to the correct GIFI lines on Schedule 100, so a mixed-use property landlord’s T2 ties to the HST returns and CRA’s matching program finds nothing to reassess above the $30,000 line.
  • We document whether your income is active or a specified investment business under section 125(7), evidencing the property management fees and services that protect the small business deduction on the first $500,000, so CRA cannot push your first dollar of income to the high rate.
  • We record rent and each recovery in QuickBooks Online for commercial landlords synced to Yardi property management, matching every tenant charge and the 13% HST on it to the lease, so your office building income ties to the T2 and CRA finds no unrecorded rent.
  • We reconcile your property tax recovery and other recoveries in Sage 50 real estate accounting against the actual operating costs billed, tracking the 13% HST on line 105, so a triple-net lease landlord’s common-area-maintenance reconciliation is exact and CRA cannot reassess over-billed recoveries.
  • We post repairs and maintenance, property insurance and utilities in Xero for commercial property, capturing the 13% HST input tax credit on each cost and holding the six years of records CRA requires, so an industrial warehouse landlord recovers tax instead of burying it.
  • We reconcile mortgage interest and property management fees in Buildium commercial property under section 20(1)(c), and flag the quarter rent passes the $30,000 HST registration threshold, so a retail plaza landlord’s financing costs are claimed and CRA never assesses late HST.
  • We run your building superintendent and maintenance payroll through Wagepoint, remit source deductions and WSIB, and map the chart of accounts to the T2 GIFI, so a missed PD7A remittance never triggers the 10% CRA penalty on your commercial property wages.
  • We file the separate-class election so your eligible non-residential building depreciates at the 6% enhanced Class 1 CCA rate rather than the 4% base, because the extra two points on a multimillion-dollar office building compounds into real tax deferred from CRA every year.
  • We protect your $500,000 small business deduction from the specified investment business trap under section 125(7) by documenting the significant services your corporation provides, because a commercial landlord with five or fewer employees loses the 12.2% Ontario small business rate to CRA.
  • We move your personally held building into a commercial property holdco on a section 85 rollover, electing an amount that defers the capital gain and recapture, so an owner incorporating a retail plaza worth over $1.25M pays no immediate tax and CRA accepts the transfer.
  • We watch the $50,000 passive-income limit and recover the refundable tax in your RDTOH pool under section 129, because aggregate investment income above it grinds down the small business deduction and CRA will not refund the RDTOH unless your T2 claims it.
  • We plan disposition timing so recapture and terminal loss on the building land in the right year, and set the salary-and-dividend mix, so combined tax is minimized and CRA collects no more than the low rate on the first $500,000 of active income requires.
  • We handle the catch-up corporate tax return for commercial landlords, reconstructing unfiled T2 income from bank deposits, rent rolls and lease schedules, and filing each year past its six-month T2 deadline, so CRA cannot arbitrarily assess your commercial real estate corporation’s income.
  • Late filing costs the 5% plus 1% per month late-filing penalty on the balance owing up to twelve months, so we file your oldest unfiled T2 first to stop the penalty compounding and limit the arrears interest CRA charges your commercial landlord corporation.
  • We rebuild the undepreciated capital cost pools across the unfiled years so missed 6% enhanced building CCA and CCA Class 8 equipment at 20% is recovered, and any recapture is reported to CRA before the reassessment window closes on your office building.
  • We file an RC4288 taxpayer relief request to cancel penalties and interest where illness, a prior bookkeeper’s error or genuine hardship applies, covering the ten years CRA allows and saving your commercial landlord corporation real money on the accumulated arrears.
  • We file the unfiled HST returns alongside the T2 years, matching the 13% HST you collected on base rent and recoveries to the input tax credits on operating costs, so CRA does not layer HST arrears onto the catch-up filing for your retail plaza.
  • Because commercial rent is a taxable supply, not exempt like residential, HST applies at 13%, so we charge and file it on your base rent and CAM recovery and report it on line 105, so CRA never assesses uncollected tax on your office building.
  • You must register once taxable revenue passes the $30,000 HST registration threshold across four consecutive quarters, and we track the exact quarter your corporation crosses it and file the first GST/HST return, so CRA cannot assess back-tax where you never charged HST on rent.
  • Because commercial rent is taxable, we claim the input tax credits on your operating costs and recover the 13% HST paid to buy or build the property on line 108, instead of letting an industrial warehouse landlord overpay CRA and erode margin.
  • On a purchase we handle the GST/HST self-assessment on real property by a registrant and the section 167 election on a going-concern acquisition, so buying a $2 million retail plaza does not tie up 13% HST in cash flow CRA later refunds.
  • We reconcile the 13% HST on your GST/HST returns to the rental income on your T2, because CRA’s matching program compares the two and a commercial landlord whose HST and income figures disagree is among the fastest files selected for audit.
  • We file an amended T2 to move your building into a separate Class 1 pool at the enhanced 6% rate where a prior preparer used the 4% base or the wrong class, restoring the capital cost allowance CRA allows on your office building.
  • We apply Regulation 1100(11), which stops capital cost allowance from creating or increasing a rental loss, restating a year a prior return over-claimed CCA and generated a loss CRA would deny, so your commercial landlord T2 is compliant before the four-year reassessment window closes.
  • We clean up the shareholder loan and report it on Schedule 50, because a balance the owner owes past two year-ends is added to personal income by CRA under subsection 15(2), a costly surprise for a commercial landlord who drew cash from the property.
  • We reallocate the purchase price between commercial land cost and building where a prior return depreciated part of the land, filing the amended T2 before the four-year CRA reassessment window closes so the refund on over-claimed CCA goes back to your commercial property.
  • We recover input tax credits on leasehold improvements and capital improvements a prior bookkeeper expensed without claiming the 13% HST, and correct the GIFI so revenue ties out, filing the adjustment before CRA’s window closes and putting the refund back in your retail plaza.
  • When CRA opens a property-income audit, our CRA audit help answers the Regulation 1100(11) rental-loss question and the CCA claim within the 30-day deadline, so a review of one year does not expand into a reassessment of three prior years on your office building.
  • Where CRA reviews the 13% HST you charged on base rent and CAM recovery, we reconcile the returns to the T2 and defend the input tax credits claimed, so an industrial warehouse landlord’s HST position holds and no arrears or penalty is assessed.
  • Where CRA characterizes your corporation as a specified investment business under section 125(7) and denies the small business deduction, we document the significant services that prove active management, defending the low 12.2% rate on the first $500,000 of rental income.
  • We resolve CRA land-and-building allocation and capital-versus-current expense disputes by supporting your split with an appraisal, because CRA reallocates value to non-depreciable land to deny CCA, and a defensible allocation protects the 6% pool on your office building.
  • We file the Notice of Objection within 90 days of a CRA reassessment and pursue relief on Form RC4288 where a prior accountant’s error caused the penalties, protecting your right to the Tax Court and the interest your commercial landlord corporation should not carry.
  • We prepare the CSRS 4200 CPA compilation report, the financial statements for commercial landlords a bank requires across two fiscal years and ties to your T2 filed with CRA, before it approves financing on the acquisition of an office building.
  • We present the commercial land, building and leasehold improvements on the balance sheet at the correct split and tie the compiled statements to two years of T2 filings, so a bank credit desk sees stable rental income and approves financing on your retail plaza faster.
  • Lenders financing a refinancing want two years of compiled statements showing stable margins, so our accounting firm for commercial landlords presents your assets, mortgage interest and base rent with the T2 the bank and CRA hold, approving the loan sooner on your industrial warehouse.
  • For prequalification with institutional lenders and CMHC, we produce reviewed or audited statements where a compilation is not enough, tying two fiscal years to your T2 filed with CRA so your commercial landlord corporation meets the thresholds a $5 million mortgage requires.
  • The CSRS 4200 report from your CPA for commercial landlords discloses that no audit or review was performed and ties to the T2 CRA holds, delivered within 30 days so a lender’s conditional approval on your acquisition financing is not lost.
  • We register your commercial landlord holdco under the Ontario Business Corporations Act, answering should I hold commercial property in a corporation by dropping the tax CRA takes on retained rental profit to the 12.2% rate on your first T2 where the income is active.
  • We complete the section 85 rollover on Form T2057, transferring the office building from personal ownership into the corporation at elected amounts, so the capital gain on land worth over $500,000 and the recapture are deferred, not taxed by CRA.
  • We open the corporation’s CRA Business Number, 13% HST and payroll accounts and register WSIB for building staff, so your commercial landlord corporation never remits the same rental revenue twice or triggers a CRA penalty on a late first return.
  • Where you hold the office building personally on a T776 statement of real estate rentals, we model whether a holdco saves tax, weighing your personal rate against the corporate 12.2% on the first $500,000, so you pick the structure CRA and the numbers support.
  • We set the opening balance sheet, minute book, share classes and first fiscal year-end up to 53 weeks out, so dividends can later be split, your commercial real estate corporation is ready for a sale, and the first T2 and CRA balance-due date are deferred.
  • We rebuild the rent roll and every tenant ledger for the unposted years, then reconcile base rent against the CAM, TMI and property-tax recoveries actually billed, so each suite’s arrears and vacancy months tie back to the lease.
  • Because commercial rent is a taxable supply and not exempt like residential rent, we file the missed HST returns at 13% on your base rent and recoveries, and recover the input tax credits on operating costs never claimed on line 108.
  • We re-sort the catch-up years between capital improvements and deductible repairs, so a $180,000 roof replacement is capitalized to the building rather than expensed, while routine suite turnovers and mechanical servicing stay current-year operating costs.
  • We reconcile the property manager’s monthly statements to your own ledger, clear the management-fee and disbursement differences, and bring superintendent and building-staff payroll current, so remittances and slips are filed for every year that was missed.
  • With the rent roll, recoveries and expense accounts rebuilt, we prepare the outstanding back-year returns for each property corporation, confirming the building CCA claimed never creates or increases a rental loss under Regulation 1100(11).
  • Where a commercial property sits in a US corporation, we prepare Form 1120 with the rent roll, recovery income and building depreciation on a US basis, then reconcile that result to the Canadian statements behind your T2.
  • For a Canadian landlord corporation earning US rents, we file Form 1120-F with a treaty-based return position disclosed, so your permanent-establishment claim is preserved and no US deadline passes on the strip mall or warehouse across the border.
  • We file Form 5472 for each reportable transaction between your US property entity and its foreign owner, such as intercompany mortgage interest or management fees, because a missed form carries a $25,000 penalty for every year it is late.
  • Where the property is held through an LLC, we work the hybrid mismatch: CRA sees a corporation, the IRS sees a flow-through, so the US tax paid on rental profit is claimed as a foreign tax credit rather than stranded.
  • If you hold US-situs real property directly, or a US-resident shareholder owns your Ontario landlord corporation, we map the federal and state filings, the withholding on gross rents and the disposition reporting so both revenue agencies see matching figures.
  • We prepare the Form RC199 application setting out the unfiled years, the properties involved and the corrected rent and expense figures, so your disclosure lands as a complete package rather than an admission with numbers still missing.
  • We test the file against the five acceptance conditions, that it is voluntary, complete, involves a penalty, includes information at least one year overdue and comes with payment of the estimated tax, before a single page is submitted.
  • We quantify unreported base rent, percentage rent and CAM, TMI and tax recoveries property by property and year by year, so a landlord disclosing $340,000 of missed recovery income files one consistent set of restated statements.
  • Because commercial rent is a taxable supply, unremitted 13% HST on rent and recoveries is disclosed alongside the income, with the input tax credits on your property costs claimed so CRA assesses only the net amount actually owing.
  • We reconstruct shareholder-loan draws taken out of rent deposits during the unreported years and repay or report them properly, then argue the general track over the limited track so penalty and partial interest relief stays available.

Commercial Landlord Tax & HST Check

Six quick questions on your HST, input tax credits, enhanced CCA, triple-net recoveries, land allocation and structure. No fee shown.

1. Are you registered and charging 13% HST on your commercial rent?

2. Are you claiming input tax credits on your operating costs?

3. Have you made the enhanced-CCA separate-class election on your building?

4. Are you reconciling your CAM and TMI recoveries to actual costs?

5. Is your purchase price allocated correctly between land and building?

6. Is your property held in the right structure (corporation or holdco)?

Free CPA Consultation for Commercial Landlords

Case Studies: Commercial Landlord Accounting & Tax

Toronto Office Building Holdco — Enhanced 6% Separate-Class CCA Election Captured

The problem: A Toronto holdco owning a downtown office building had a prior accountant claiming building CCA at the 4% base Class 1 rate, unaware that the eligible non-residential building qualified for the enhanced 6% rate through a separate-class election that was never filed. Several years of deductions had been left on the table, and the purchase price had been allocated with too much value to non-depreciable land.

What we did: We filed the separate-class election, moved the office building into its own Class 1 pool at 6%, corrected the land-and-building allocation with an appraisal on Schedule 8, and amended the open T2 years, confirming Regulation 1100(11) so the added CCA did not create a rental loss.

The result:

  • Enhanced 6% CCA captured on the office building
  • Saved $34,600 in corporate tax across the corrected years
  • Land allocation defensibly documented for CRA

Mississauga Retail Plaza — HST/ITC Recovery on Purchase & CAM/TMI Reconciliation Fixed

The problem: A Mississauga retail plaza landlord had bought the property without self-assessing the HST correctly, leaving input tax credits on the acquisition unclaimed, and had been billing tenants CAM and TMI recoveries that were never reconciled to actual operating costs — over-billing some tenants and under-recovering from others, with the 13% HST on recoveries mishandled.

What we did: We filed the GST/HST self-assessment on the real property purchase, recovered the input tax credits on the acquisition and operating costs on line 108, rebuilt the common-area-maintenance reconciliation in Yardi against actual costs, and matched every recovery and its 13% HST to the lease.

The result:

  • Acquisition input tax credits recovered from CRA
  • CAM and TMI recoveries reconciled and re-billed correctly
  • Reduced monthly bookkeeping time by 10 hours

Ottawa Industrial Landlord — Active-vs-Investment Structure & Section 85 Holdco Rollover

The problem: An Ottawa owner held an industrial warehouse personally on a T776, paying tax at the top personal rate on the net rent, and CRA would have treated a straight transfer to a corporation as a taxable disposition of the appreciated land. There was no plan to protect the small business deduction once incorporated, given the five-or-fewer-employees specified-investment-business risk.

What we did: We incorporated a holdco and moved the industrial warehouse in on a section 85 rollover at elected amounts, deferring the capital gain and recapture, then documented the active management and services to defend the 12.2% rate on the first $500,000 under section 125(7).

The result:

  • Section 85 rollover deferred the gain on $1.25M of land
  • Saved $22,800 a year at the corporate small-business rate
  • Active-income position documented for CRA

Our Simple Process

How We Work With Commercial Landlords

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 prior T2 or T776 returns, purchase and land documents, your rent roll, leases, CAM budgets, mortgage details, and bank statements.

Step 2

First 30 Days (Cleanup & Setup)

Set up QuickBooks Online, Sage 50, Yardi, Buildium or AppFolio, build the CAM and TMI reconciliation workflow, classify the CCA classes and separate-class election, and register for HST.

Step 3

Monthly Close

Monthly reconciliations, Dext receipt capture, rent-and-recovery matching, HST tracking, and input tax credit logging.

Step 4

Quarterly Planning Review

HST review, active-income monitoring, CCA planning, financing, and passive-income monitoring against the $50,000 limit.

Step 5

Year-End Close & T2 Filing

Trial balance, financial statements with the correct land-and-building split and CAM reconciliation, T2 with GIFI, and CRA preparation.

Get Your Commercial Landlord Taxes Done Right Today

Transparent Pricing for Commercial Landlords

Affordable Pricing for Commercial Landlords

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 Commercial Landlord Accountant

Meet your lead commercial landlord accountant. As your property-income 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 commercial landlords and property owners across Ontario and Canada.

Serving Commercial Landlords Across Ontario

Our CPA team provides specialized accounting and tax solutions for commercial landlords throughout Ontario. We understand how commercial property actually earns, what CRA looks at on a property-income file, and how to keep the HST, the enhanced CCA, the triple-net recoveries and the land allocation in order.

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

9:00 AM – 8:30 PM (Mon – Sun)

North York (ON)

150 Graydon Hall Dr #912, North York, ON M3A 3B2, Canada

+1 (647) 212-9559

9:00 AM – 8:30 PM (Mon – Sun)

Commercial Landlord Accounting & Tax FAQs

Should I hold my commercial property in a corporation?
You can hold it personally on a T776 statement of real estate rentals or through a corporation or holdco, and for serious commercial real estate a corporation usually wins. Incorporating under the Ontario Business Corporations Act puts limited liability between the property and your personal assets, and it can drop the tax on retained rental profit to about 12.2% in Ontario on the first $500,000 where the income is active. The caution is the active-versus-specified-investment-business test under section 125(7): a corporation earning mainly property income with five or fewer full-time employees can lose the Small Business Deduction, so the management and services you provide have to be real and documented. You register for HST and charge 13% on commercial rent whether you own personally or corporately, so that is not the deciding factor. When incorporating makes sense, we move the building in on a section 85 rollover so no tax is triggered on the transfer. There are added costs, annual T2 filing and a minute book, but for a growing commercial portfolio the protection and planning usually outweigh them, and our firm handles the whole setup.
Do I charge HST on commercial rent?
Yes. Unlike residential rent, which is exempt, commercial rent is a taxable supply, so you charge 13% HST in Ontario on your base rent and on CAM, TMI and other recoveries once taxable revenue passes the $30,000 registration threshold. The upside is that you claim input tax credits on the HST you pay on operating costs and can even recover the HST paid to buy or build the property. We file the returns and match them to your T2 so CRA’s matching program has nothing to flag.
How is commercial rental income taxed in Canada?
An incorporated commercial landlord files a T2 and pays about 12.2% in Ontario on the first $500,000 of active business income under the Small Business Deduction, with profit above that at the general rate. If the corporation is a specified investment business, that income is taxed at the high rate with refundable tax (RDTOH) under section 129. Held personally, the net rent is taxed on your T1 at your marginal rate. A non-resident landlord instead files under section 216, with 25% withholding on gross rent and a section 116 clearance on a sale.
What CCA class is my commercial building and can I claim the enhanced rate?
A commercial building is Class 1, and the base rate is 4%. An eligible non-residential building acquired after March 18, 2007 qualifies for an enhanced 6% rate, but only if you put it in a separate Class 1 pool through a separate-class election, which most landlords never file. Leasehold improvements go in Class 13 and equipment in Class 8. The land is never depreciable. Making the election on Schedule 8 is where a lot of deductions are left on the table.
Can CCA create a rental loss?
No. Under Regulation 1100(11), capital cost allowance on a rental building cannot create or increase a rental loss, so your CCA claim is capped at the net rental income before CCA. You can carry the unclaimed capital cost forward and use it in a more profitable year. A prior preparer who over-claimed CCA and produced a loss is exactly the error CRA reassesses, so we apply the restriction correctly on your T2.
How do I recover the HST I paid to buy commercial property?
Because commercial rent is taxable, the HST you pay to acquire or construct the property is recoverable as an input tax credit, unlike a residential landlord who cannot recover it. As a registrant you self-assess the HST on the purchase of real property and claim the offsetting credit on line 108, and on a going-concern purchase a section 167 election can make the sale HST-free. Done right, the 13% HST does not tie up cash. We handle the self-assessment and the claim so nothing is lost.
What is a triple-net lease and how are CAM recoveries handled?
In a triple-net lease the tenant reimburses the landlord for property tax, maintenance and insurance on top of base rent. Those common-area-maintenance and TMI recoveries are income to you and must be reconciled to the actual operating costs each year, so you neither over-bill nor under-recover from tenants. The 13% HST applies to the recoveries as well as the rent. We build the reconciliation in software such as Yardi and tie every recovery back to the lease.
How are tenant inducement payments taxed?
A tenant inducement payment you make to attract a tenant is generally deductible to you as a landlord over the term of the lease, or on capital account depending on its nature, rather than all at once. If you receive an inducement, it is usually income. Related leasehold improvements you fund go in Class 13 and are written off over the lease term. Getting the character right matters because CRA reviews how inducements and leasehold costs are treated, and we document the position on your T2.
Is my commercial rental income active or investment income?
It depends on how much service you provide. Under section 125(7), a corporation earning mainly income from property with five or fewer full-time employees can be a specified investment business, taxed at the high rate with refundable tax under section 129. Active management, staff and significant services push the income toward active business income that keeps the 12.2% rate on the first $500,000. We document those services so CRA cannot recharacterize the income and strip your Small Business Deduction.
How do I allocate the purchase price between land and building?
You split the purchase price between the land and the building based on relative fair market value, usually supported by an appraisal or the municipal assessment split. Only the building and leasehold improvements can be depreciated; the land portion never can. A defensible allocation on Schedule 8 protects your 6% enhanced Class 1 pool and keeps CRA from reallocating value to non-depreciable land and reassessing your CCA later.
What happens tax-wise when I sell my commercial property?
The exit is usually your biggest tax event. The land often carries a large capital gain, the building and equipment can trigger recapture or a terminal loss, and HST generally applies on the sale of commercial real property. If you sell the shares of a qualifying corporation, the $1.25M Lifetime Capital Gains Exemption can shelter much of the gain, but only with planning years ahead. We model the sale so the tax is arranged before a buyer appears.
What records does CRA want from a commercial landlord?
Six years of records: bank statements, your rent roll and leases, HST returns, the purchase and land documents with your land-and-building allocation, CAM and TMI budgets and reconciliations, mortgage and interest statements, and property tax and operating-cost invoices. A CCA-created rental loss, HST on rent and recoveries, and a wrong land allocation are the areas CRA probes hardest, so clean records are your best defence.
How do I get started?
Book a free consultation and you will know your exact fees within two minutes. Call 647-212-9559 or email info@gondaliyacpa.ca.

Related Industries We Serve

Accountant for Rental Property Owners

  • Property income and CCA planning
  • Land and building allocation
  • Capital gains and HST on sale

Accountant for Parking Lot Businesses

  • Active-versus-investment income planning
  • Land and surface CCA allocation
  • HST and corporate tax filing

Accountant for Incorporated Businesses

  • T2 corporate tax filing and planning
  • Salary versus dividend optimization
  • Financial statements and bookkeeping

Accountant for Numbered Companies

  • Numbered holdco tax planning
  • Section 85 rollovers and structuring
  • Corporate filings and bookkeeping

Commercial Landlord Accounting & Tax Done Right.

T2 filing, enhanced 6% building CCA, 13% HST on rent and input tax credit recovery, CAM and TMI reconciliation, active-versus-investment income, land allocation and the eventual sale under one roof. AFFORDABLE flat fees, no hourly billing. Licensed CPA Ontario. 1300+ five-star reviews. 30-Day Money-Back Guarantee.



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