Estate Agents Tips: Tax Savings Strategy for Real Estate Agents Canada

Estate Agents Tip: Tax Savings Strategy for Real Estate Agents Canada

This video covers a unique tax savings strategy for real estate agents in Canada. If you are a real estate agent, then it is very important that you watch this video.

As a real estate agent in the top marginal bracket in the province of Ontario, you are paying tax at a rate of 46.4%. Now, wouldn’t it be nice if you could incorporate and pay tax at a rate of 16.5%? 16.5% is the corporate income tax rate for small businesses in Canada. Unfortunately, the Real Estate Council of Ontario (RECO) does not permit Real Estate agents to incorporate.

So how do we solve this dilemma? It involves a series of steps using a management company. This video will walk you through those steps.

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Table Of Contents

01:07 – Create A New Corporation Owned By Your Spouse
01:30 – Expenses Managing Company Should Pay For
01:59 – Labour Hours
02:13 – Pay Monthly Cheque To Management Company


The information provided in this video is intended to provide general information. The information does not take into account your personal situation and is not intended to be used without consultation from accounting and financial professionals. Allan Madan and Madan Chartered Accountant will not be held liable for any problems that arise from the usage of the information provided in this video.

Get More Information For Estate Agents Tips Here: commercial property to rent glasgow

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12 thoughts on “Estate Agents Tips: Tax Savings Strategy for Real Estate Agents Canada

  1. Sonat, when your spouse draws down from a corporation (either through dividends or salary), it is taxed at the personal level. Suppose your spouse takes out a dividend, she would have to declare the full dividend amount for tax purposes, and then she'll received a dividend tax credit for the portion of taxes already paid through the corporation. Hope that helps.

  2. Great video. I'm just curious, if the corporation is in your spouse's name and the profits of the corporation get taxed 16.5%, would she get taxed again for pulling money out of the corporation in her tax bracket (say to buy personal things)? or are the profits of the corporation just taxed once?

    Thank you,

  3. Excellent content, well spoken.
    Overall fantastic job.

    I'm in B.C. and a R.E. investor not a Realtor, but If I was a Realtor in your next of the woods we would be talking.

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