R v. Pike
Cellphones, tablets, and laptops have become like modern-day diaries. They contain information about your likes and dislikes, your messages, your favourite and least favourite photos, and maybe even that juicy…
Realtors in Ontario are now able to incorporate with the passing of Bill 145, Trust in Real Estate Services Act, 2020, which permits them to earn income through a Personal Real Estate Corporation (PREC).
A PREC allows realtors to defer personal tax and pay a corporate tax rate instead, which may result in better tax rates and deferral opportunities.
A PREC must have one shareholder that is a broker or salesperson that owns all of the voting shares.
A PREC cannot carry on the business of trading in real estate. Instead, it provides the services of its controlling shareholder to the brokerage that employs him or her pursuant to a required agreement.
Daniel & Partners LLP would be happy to assist real estate agents and brokers throughout the Niagara Region and beyond with incorporating their businesses, negotiating and drafting the agreement with their brokerage, and to review their current estate plan, as ownership of a private corporation opens doors to additional options. Please contact us for more information.
Blog post written by Sarah J. Draper