We Handle Your Real Estate Agent GST/HST Filing
Commission splits, vehicle ITCs, advertising expenses, Quick Method vs. Regular Method, PREC filing, referral fees, staging costs, brokerage desk fees. We handle all of it. Flat fee. Filed on time. Every ITC claimed.
What Is Included in Our Real Estate Agent GST/HST Filing Service
Everything you need for CRA-compliant GST/HST filing as a real estate agent or PREC. No hourly billing.
| Included | What We Do |
|---|---|
| GST/HST return preparation and filing | We prepare and file your GST/HST return (quarterly or annual) through CRA on your behalf, on time, every period. |
| Commission income reconciliation | We reconcile commission income from your brokerage statements, T4A slips and bank deposits. Every dollar accounted for before filing. |
| Vehicle ITC calculation with logbook support | We calculate the business-use percentage of your vehicle expenses (lease, fuel, insurance, maintenance, parking) and claim the correct ITC. We help maintain a CRA-compliant logbook. |
| Advertising and marketing ITC recovery | We claim ITCs on all advertising: realtor.ca, social media ads, print, signage, photography, videography, virtual tours, staging and open house expenses. |
| Quick Method vs. Regular Method analysis | We calculate both methods for your commission income and recommend the one that produces the lower GST/HST remittance. Reviewed annually. |
| PREC (Personal Real Estate Corporation) filing | If you operate through a PREC, we file the corporate GST/HST return, manage the commission flow from brokerage to PREC and handle the T2 corporate return. |
| Referral fee GST/HST tracking | We track GST/HST on referral fees paid to and received from other agents. Referral fees paid are ITCs. Referral fees received are taxable revenue. |
| Home office ITC calculation | We calculate the business-use portion of your home office (rent or mortgage interest, utilities, internet, insurance) and claim the proportional ITC. |
| CRA correspondence and notices | We respond to CRA notices, assessments and review letters related to your GST/HST account on your behalf. |
| Annual T1 or T2 tax return | Filed FREE for every GST/HST filing client. Sole prop T1 business schedule or PREC T2 corporate return at no additional charge. |
How It Works
Four steps. We handle the tax. You close deals.
Connect
We connect to your QBO or Xero and link your bank, brokerage statements and vehicle expense records. Setup is free.
Reconcile
We reconcile commission income to brokerage statements and T4A. Every expense categorised. Vehicle logbook reviewed.
Calculate
We calculate GST/HST collected on commissions, ITCs on all expenses, vehicle business-use percentage and net tax owing or refund.
File
We file your GST/HST return through CRA, confirm the filing and notify you of the amount owing or refund expected.
Real Estate Agent GST/HST Filing from $150 / Filing
Flat fee. Commission reconciliation, vehicle ITCs, advertising recovery and T1/T2 filed FREE.
How GST/HST Works on Real Estate Commissions
| Transaction | GST/HST Treatment | How We Handle It |
|---|---|---|
| Commission earned on a sale | Taxable at 13%. You charge GST/HST on your commission to the brokerage or client. | Commission income reconciled to brokerage statements. GST/HST collected verified against T4A. |
| Brokerage desk fee or split | Taxable at 13%. The brokerage charges you GST/HST on their fee. You claim the ITC. | Desk fees and brokerage splits coded as expenses. ITC claimed every period. |
| Referral fee paid to another agent | Taxable. The referring agent charges you GST/HST. You claim the ITC. | Referral fees tracked. ITC claimed on the GST/HST component. |
| Referral fee received from another agent | Taxable income to you. You charge GST/HST on the referral fee you receive. | Referral income added to taxable revenue. GST/HST collected on the full amount. |
| Commission on a new home sale (from builder) | Taxable at 13%. Builder pays your commission including GST/HST. | New construction commissions reconciled separately. GST/HST collected verified. |
| Commission on a resale residential transaction | Taxable at 13%. The resale of the home is exempt, but your commission for the service is taxable. | Commission is a taxable service regardless of whether the underlying property sale is exempt. |
| Commission on a commercial lease or sale | Taxable at 13%. Commercial real estate commissions follow the same GST/HST rules as residential. | Commercial commissions tracked separately for income reporting. Same GST/HST treatment. |
Your Commission Is Always Taxable: Many new agents confuse the GST/HST treatment of the property with the treatment of their commission. The resale of an existing home is exempt from GST/HST, but your commission for facilitating the sale is a taxable supply. You charge 13% GST/HST on every commission you earn, regardless of whether the property is new construction, resale, commercial or residential.
Every Real Estate Agent ITC We Claim for You
| Expense | ITC Claimable? | Special Rules |
|---|---|---|
| Vehicle (lease or purchase payments) | Business-use % ITC | ITC proportional to business-use percentage. A CRA-compliant logbook is required. 80% business use = 80% ITC on lease, fuel, insurance, maintenance and parking. |
| Fuel and car washes | Business-use % ITC | Same business-use percentage as vehicle. Keep all fuel receipts. |
| Advertising (realtor.ca, social media, print, signage) | Yes, full ITC | Google Ads, Meta Ads, Instagram promotions, bus bench ads, flyer printing, business cards. Full ITC on GST/HST paid. |
| Photography, videography, virtual tours, drone | Yes, full ITC | Listing photos, video walkthroughs, Matterport scans, drone footage. Full ITC if vendor is registered. |
| Staging costs | Yes, full ITC | Home staging for listings. Full ITC on the staging company's invoice. Keep all invoices. |
| MLS fees and real estate board dues | Yes, full ITC | TRREB, OREA, local board fees. GST/HST on membership and MLS access is recoverable. |
| Brokerage desk fee or franchise fee | Yes, full ITC | Monthly desk fee, transaction fee or split paid to your brokerage. Full ITC on GST/HST charged. |
| Phone, internet and CRM software | Business-use % ITC | If phone is 90%+ business use, full ITC. Mixed use: ITC proportional to business use. CRM subscriptions (kvCORE, Follow Up Boss, LionDesk) full ITC. |
| Home office (rent/mortgage interest, utilities, insurance) | Business-use % ITC | Proportional to square footage of dedicated home office. Utilities and internet included. |
| Client gifts and meals | 50% ITC (meals) / Full ITC (gifts under $500) | Client dinners and entertainment: 50% ITC. Client closing gifts: full ITC if under $500 per recipient per year. |
The Vehicle Logbook Is Non-Negotiable: CRA audits vehicle ITCs for real estate agents at a higher rate than almost any other profession. Without a CRA-compliant logbook documenting the date, destination, client name, purpose and kilometres for every business trip, CRA will deny 100% of your vehicle ITCs on audit. At $12,000 per year in vehicle expenses, a denied logbook costs you $1,560 in lost ITCs plus the income tax deduction. We provide a logbook template and review it with every filing to ensure compliance.
Quick Method vs. Regular Method for Real Estate Agents
The Quick Method is popular with real estate agents because it simplifies filing. Instead of tracking ITCs on every expense, you collect GST/HST at 13% and remit a lower percentage to CRA. The difference is yours to keep. But the Quick Method is not always the cheaper option.
| Factor | Regular Method | Quick Method (8.8%) |
|---|---|---|
| How GST/HST is calculated | GST/HST collected on commissions minus ITCs on all expenses | GST/HST-inclusive commission income x 8.8%. No ITCs tracked (except capital purchases over $30,000). |
| Better when expenses are | Above 40% of commission income (high vehicle, advertising, staging costs) | Below 30% of commission income (low overhead agents) |
| Better when vehicle costs are | High (leasing a luxury vehicle, high mileage) | Low (paid-off vehicle, minimal driving) |
| Revenue threshold | No limit | $400,000 annual taxable revenue or less (including GST/HST) |
| 1% credit on first $30,000 | N/A | Yes. Additional $300 savings per year. |
Real Client Example: A Toronto agent earning $320,000 in gross commissions was using the Quick Method and remitting $28,160 per year (8.8%). We switched them to the Regular Method. Their ITCs on vehicle ($2,880), advertising ($3,120), photography/staging ($1,680), MLS/board fees ($780), brokerage fees ($4,160), phone/CRM ($520) and home office ($420) totaled $13,560. GST/HST collected was $36,814. Regular Method remittance: $23,254. Annual savings: $4,906. We calculate both methods for every agent annually.
Not Sure Which Method Saves You More? Ask a CPA.
We calculate Quick Method vs. Regular Method for every real estate agent client and recommend the lower remittance.
Personal Real Estate Corporations (PRECs) GST/HST Filing
Since October 2020, Ontario real estate agents can incorporate as a Personal Real Estate Corporation. A PREC earns the commission, pays the agent a salary or dividend and files its own corporate GST/HST return and T2. We handle the full PREC GST/HST and corporate tax filing.
| PREC Service | What We Do |
|---|---|
| PREC GST/HST filing | Corporate GST/HST return prepared and filed. Commission flows from brokerage to PREC, not to you personally. |
| Commission flow structure | We structure the commission payment from brokerage to PREC correctly for both GST/HST and income tax purposes. |
| Salary vs. dividend optimisation | We model the optimal salary/dividend split each year to minimize combined corporate and personal tax while maintaining RRSP room. |
| T2 corporate tax return | Filed FREE for every PREC GST/HST client. SBD at 12.2% applied on active business income under $500,000. |
| Personal T1 return (agent) | Your personal T1 reflecting salary and/or dividends from the PREC. Coordinated with the T2 for optimal tax planning. |
PREC Tax Deferral: A PREC earning $250,000 in commission income pays 12.2% corporate tax on retained earnings vs. personal rates of 29% to 53.53%. If you leave $100,000 in the PREC, the annual tax deferral is approximately $16,130. Over five years, that is $80,650 working inside your corporation. We assess PREC suitability for every agent earning over $150,000 in gross commissions. Incorporate a PREC for $35 →
The 10 GST/HST Errors We Prevent for Real Estate Agent Clients
| # | Error | What It Costs | How We Prevent It |
|---|---|---|---|
| 1 | No vehicle logbook | 100% of vehicle ITCs denied on CRA audit. $1,560+ per year lost. | Logbook template provided. Reviewed with every filing for CRA compliance. |
| 2 | Using Quick Method when Regular saves more | $2,000 to $5,000 per year overpaid to CRA | Both methods calculated annually. Lower remittance recommended. |
| 3 | Not claiming ITCs on photography, staging and virtual tours | $500 to $3,000 per year in lost ITCs | All listing expenses categorised and ITCs claimed every period |
| 4 | Not claiming ITCs on MLS fees and board dues | $300 to $800 per year lost | Board and MLS invoices captured. ITCs extracted and claimed. |
| 5 | Not tracking referral fees as taxable revenue | Unreported income. CRA reassessment with interest and penalties. | Referral fees received coded as taxable revenue with GST/HST collected. |
| 6 | Claiming full ITC on a mixed-use vehicle | Over-claimed ITCs reversed on audit. Penalties and interest. | Business-use percentage applied from logbook. No estimates. No rounding up. |
| 7 | Claiming full ITC on client meals (should be 50%) | Over-claimed ITCs reversed. Interest added. | Client meals coded at 50%. Client gifts under $500 coded at 100%. |
| 8 | Not registering for GST/HST until after the $30,000 threshold | Lost ITCs on pre-registration expenses. Retroactive liability. | Registration recommended at the start of your real estate career or PREC incorporation. |
| 9 | PREC commission flow not structured correctly for GST/HST | Double taxation or missed ITCs on PREC expenses | PREC commission flow configured from brokerage to corporation at onboarding. |
| 10 | Filing GST/HST returns late | 1% penalty + 0.25%/month + 8% daily compound interest | Calendar managed. Filed before deadline every period. |
Transparent Flat-Fee Pricing
No hourly billing. No surprises. Vehicle logbook support and Quick Method analysis included.
| Service | Fee | Includes |
|---|---|---|
| GST/HST return filing (per filing) | From $150 | Return preparation, commission reconciliation, vehicle ITC calculation, advertising ITCs, CRA filing |
| PREC GST/HST + T2 corporate filing (annual) | From $600/year | Corporate GST/HST return, T2 corporate return, salary vs. dividend optimisation, commission flow structuring |
| Monthly bookkeeping + GST/HST | From $200/month | Full monthly bookkeeping, commission reconciliation, vehicle tracking, GST/HST filing, expense categorisation |
| Personal T1 tax return (sole prop or PREC salary) | FREE | Included for all GST/HST filing and bookkeeping clients at no additional charge |
| Quick Method vs. Regular Method analysis | FREE | Both methods calculated. Lower remittance recommended. Reviewed annually. |
| QBO or Xero setup | FREE | Chart of accounts configured for real estate agents with vehicle tracking and correct GST/HST codes. Included at onboarding. |
Know Your Exact Fee Before We Start
Flat fee, fixed in advance. 30-Day Money-Back Guarantee. 60-Day Fees-Matching Policy.
Real Estate Agent GST/HST Filing: Cities We Serve
We file GST/HST returns for real estate agents across every Ontario city and Canada. No distance limits, no extra fees.
Frequently Asked Questions
Stop Overpaying GST/HST. Let a CPA Handle It.
Gondaliya CPA provides real estate agent GST/HST filing, vehicle ITC recovery, Quick Method analysis and PREC filing. From $150 per filing. T1/T2 filed FREE.