Real estate accounting for Ontario investors, landlords, and agents
You sold a rental property. CRA says it's a flip. Now your tax bill just doubled.
That grey zone between capital gain and business income trips up Ontario real estate owners every year. And the rules around rental deductions, HST on commissions, and principal residence reporting aren't exactly simple.
We handle personal tax, corporate tax, bookkeeping, and CRA audit support for people who own, sell, or earn commissions on real estate. Every property transaction documented. Every T776 expense claimed. Every form filed correctly.
Book a Free ConsultationWhat goes wrong with real estate taxes (and how we fix it)
These aren't hypotheticals. They're the exact situations Ontario investors, landlords, and agents bring to us.
CRA called your flip a business — and doubled the tax bill
You bought a property, renovated it, and sold it within 18 months. You reported 50% of the gain as a capital gain. CRA disagreed. They reassessed the entire profit as business income — 100% taxable — plus penalties on top.
We run every property sale through CRA's intent test before you file: holding period, number of flips, renovation scope, financing, your primary occupation. When the facts support capital gain treatment, your return is audit-ready. When they point to business income, we report it correctly on T2125 and claim every legitimate expense. No guessing.
Your rental deductions are a mess — and you're leaving money behind
Mortgage interest, property tax, utilities, repairs, condo fees, property management — it's all mixed together in your personal accounts. Half the receipts are missing. Every year you under-claim because the numbers don't add up.
We set up a dedicated chart of accounts for each rental property. Interest gets separated from principal on every mortgage payment. Every deductible expense gets captured. And you get a clean T776 per property. We also analyze CCA before claiming it — because triggering recapture on a future sale can cost you more than the deferral saves.
You're a real estate agent — and under-claiming everything
Desk fees, MLS dues, marketing, vehicle, home office — all out of pocket. Your brokerage issues a T4A but you never registered for HST. The home office percentage is a guess. Vehicle logs don't exist. Every deduction you claim is a coin flip.
We file your commission income on T2125, register you for HST once you cross the $30,000 threshold, and claim input tax credits on every business expense. Home office gets a proper square-footage calculation. Vehicle gets a log that actually meets CRA standards. Showings, open houses, client meetings — all deductible kilometres.
You sold your home and didn't report it — or got an HST surprise on a new build
You sold the home you lived in for five years and didn't report it. CRA sent a reassessment. Or you bought a pre-construction assignment and the builder added HST on closing you weren't expecting. These two issues alone cost Ontario homeowners thousands every year.
We report every principal residence sale on Schedule 3 and Form T2091 — that's been mandatory since 2016 — and calculate the designated years so you get the full exemption. On new builds and assignments, we walk you through the HST rebate rules, investor vs. end-user treatment, and self-supply obligations before closing. No surprises at the lawyer's office.
We don't learn real estate accounting on your file
What we track for every real estate client
Capital gains vs. business income on property sales. T776 rental statements — one per property, not lumped together. Mortgage interest separated from principal. CCA analysis on Class 1 buildings, plus recapture planning so a sale doesn't surprise you.
Principal residence exemption and Form T2091 reporting. Commission income on T2125 for agents and brokers. HST registration thresholds. Input tax credits on desk fees and MLS dues.
Home office square-footage calculations. Vehicle expense logs for showings and client meetings. HST rebate rules on new builds and assignment sales. And the CRA intent test that separates capital gain treatment from fully taxable flip income.
We've documented all of it across hundreds of investor and agent files. So when you walk in, we're already up to speed.
What real estate clients say
“They set up a separate T776 for each of my properties — something my last accountant never did. Caught a flip that CRA would've reassessed and documented the intent before I filed. First year I haven't lost sleep over my real estate taxes.”
Grab our free Canadian tax deduction checklist
A plain-English PDF covering the deductions small business owners, landlords, and self-employed Ontarians miss most often. No email required — download it and keep it.