Real Estate Incorporation

Incorporating Your Real Estate Practice Could Provide Significant Tax Savings

As of Oct 1, 2020 it became legal in Ontario for real estate agents to create entities known as Personal Real Estate Corporations or PRECs.  These new entities can allow real estate agents to defer personal income tax and pay a lower corporate income tax rate.  Some of the benefits include:

  • Instead of paying tax at a top marginal rate of 53%, the corporate income tax rate on the first $500,000 of income will be 12.2%, a potential income tax reduction of up to 40.8%
  • Income splitting with spouses and adult children involved in the business to reduce overall tax burden and create further tax savings
  • Costs of establishing a PREC are income tax deductible
  • Potential to avoid paying CPP costs of $5,796 per year
  • Improves estate and retirement planning by paying less tax and investing more in your future
  • More funds left in the business for marketing, hiring additional staff or investing

Setting up a PREC can be complicated and there are a number of requirements that need to be met.  It is important to hire a legal professional to assist with the process and we are here to help.

Act before October 31 and save 50% on Incorporation fees           

Start your PREC process with us before Oct. 31, 2020 and we will complete your incorporation for a flat fee of $1,500 (normally $3,000.)

We are pleased to be able to help real estate professional take advantage of this long-awaited change to the industry.  If you are unsure whether you qualify for a PREC, you can give us a call at (613) 763-4543 or email us at and we will give you an initial opinion for free.

460 West Hunt Club Rd. Suite 206, Ottawa

(613) 763-4543


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