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Capex CPA: Online Accounting and Tax Services for Peace of Mind

PREC Accounting for Realtors

Because a PREC works best before CRA starts paying attention

A Personal Real Estate Corporation (PREC) can be a powerful tax planning tool for realtors.

It can also quietly stop working if it is set up poorly, operated casually, or left unmanaged as your income grows.

We help real estate professionals use their PREC properly, defensibly, and strategically so tax efficiency does not disappear after the first good year.

What We Actually Manage Inside Your PREC

  • Tax Planning That Holds Up Over Time: Not just first-year savings. We plan around income volatility, marginal tax brackets, and how CRA evaluates long-term PREC usage.
  • Income Splitting and Remuneration Strategy: Salary vs dividends, family involvement, and reasonableness considerations structured conservatively and intentionally.
  • Expense Tracking With CRA Context: Proper classification of real estate expenses so deductions survive review, not just year-end filing.
  • Financial Reporting and Ongoing Compliance: Clean records, defensible filings, and a PREC that is audit-ready without being over-engineered.
  • Strategic Oversight as Your Business Scales: Guidance as commissions increase, investment activity expands, or additional corporations become part of the picture.

A PREC is not a set-it-and-forget-it structure.

Book a Discovery call to review whether your PREC is actually working the way you think it is.

Why Realtors Work With Capex CPA

Real estate income looks simple on the surface.

In practice, it is one of the fastest ways to create tax inefficiencies, compliance issues, and long-term structural problems if the accounting is treated casually.

We work with realtors at every stage, from solo agents to high-volume PREC owners, to make sure the financial structure behind the business actually supports growth instead of quietly eroding it.

Clarity Instead of Guesswork

Most issues we see are not caused by aggressive behaviour. They come from uncertainty.

We handle bookkeeping, tax filings, planning, and CRA-facing compliance with clear intent so decisions are made proactively, not after a problem appears.

You should know why something is done, not just that it was filed.

Built Specifically for Real Estate Professionals

Realtor income is cyclical, expense-heavy, and often paired with corporations, investments, and family planning.

Our services are structured around how real estate businesses actually operate, not generic small business templates.

Whether you need foundational support or higher-level oversight, the structure scales with your activity and complexity.

Tax Planning That Stays Defensible

Tax savings only matter if they hold up.

We focus on planning that balances efficiency with CRA expectations, including remuneration strategy, expense classification, and long-term PREC usage.

The goal is not maximum deductions. The goal is sustainable outcomes.

A Low-Risk Way to Start

Choosing the right accountant is easier when you can see how they think.

Our introductory period allows you to experience our approach, communication style, and level of oversight before committing long term.

Next Steps

If you want your real estate business supported by structure, clarity, and informed judgment, this is the right place to start.

How It Works

  1. Reach out or book a call so we can understand how your business currently operates.
  2. We outline the right structure, scope, and level of involvement based on your situation.
  3. You move forward knowing your accounting and tax position is intentional and defensible.

New to Capex CPA? Book a 30-minute discovery call to see whether our approach fits your business.

Is Incorporating a PREC the Right Move?

A Professional Real Estate Corporation (PREC) can be an effective planning tool for some realtors.

It can also add cost, complexity, and risk when it is set up too early, used incorrectly, or left unmanaged as income grows.

The decision to incorporate should be based on your income level, cash flow needs, long-term plans, and tolerance for administrative structure, not just the headline tax rate.

Income Timing and Family Planning

A PREC can provide flexibility in how and when income is paid, which may support tax smoothing over multiple years.

In certain circumstances, family involvement may be appropriate, but these strategies must be structured carefully and with CRA reasonableness in mind.

We focus on approaches that are practical, defensible, and aligned with how the business actually operates.

Corporate Tax Deferral, Not Permanent Savings

One of the primary benefits of a PREC is access to lower corporate tax rates on retained earnings.

This creates a deferral opportunity, not a permanent elimination of tax.

Whether that deferral is valuable depends on how much income you retain, how quickly funds are needed personally, and how long the corporation is expected to operate.

Using Corporate Funds Properly

A PREC allows certain interactions between personal and corporate finances, but these must follow strict rules.

Improper use of corporate funds is one of the most common sources of reassessments for incorporated professionals.

We help ensure that any withdrawals, loans, or reimbursements are structured correctly and documented properly.

Support Beyond the Incorporation Step

Incorporating is not the finish line.

Ongoing bookkeeping, tax planning, remuneration strategy, and compliance determine whether a PREC continues to work as intended year after year.

Our role is to manage the structure over time so decisions remain intentional as your business evolves.

Next Steps

If you are considering a PREC or already operating one, a structured review can help determine whether the setup matches your goals and income reality.

Book a Discovery call to discuss whether incorporation makes sense in your specific situation.

Real Estate & PREC Accounting FAQs:
Expert Answers for Realtors

  • Many realtors are fine without a PREC, especially early on or when most income is needed personally.
    A PREC tends to make sense when income is consistently high, cash flow is predictable, and there is a reason to retain earnings or plan over multiple years.

    We regularly advise clients not to incorporate when the structure does not add value. The goal is not incorporation. The goal is the right structure.

    This is usually determined quickly in a strategy call.

  • There is no single dollar threshold that applies to everyone.

    What matters more is:
    • how much income you keep in the business
    • whether income fluctuates year to year
    • how you pay yourself
    • whether you have longer-term planning goals

    Some realtors benefit at lower income levels. Others see little advantage even at higher income. We look at the full picture before recommending anything.

  • A PREC usually creates tax deferral, not permanent tax elimination.

    If you need most of your income personally each year, the immediate benefit may be limited.
    If you retain income, plan across multiple years, or expect income growth, the benefit can be meaningful.

    We focus on outcomes that hold up over time, not first-year optics.

  • In some situations, yes. In many situations, no.

    Family involvement must be structured carefully and meet CRA reasonableness standards. This is an area where poorly structured advice causes problems later.

    We only recommend approaches that are practical, defensible, and supported by documentation.

  • The most common issues we see are:
    • incorporating too early
    • paying themselves without a clear remuneration plan
    • mixing personal and corporate expenses
    • misunderstanding retained earnings
    • assuming the structure manages itself

    None of these are aggressive mistakes. They are usually the result of unclear guidance.

  • Yes. Many clients come to us after their PREC has been running for a few years.

    A review often identifies:
    • inefficiencies
    • documentation gaps
    • remuneration issues
    • missed planning opportunities

    A small course correction early is much easier than fixing problems after CRA questions arise.

  • Yes. More importantly, we structure things to reduce the likelihood of issues in the first place.

    Clean records, consistent treatment, and documented rationale go a long way.
    If CRA does ask questions, we help you respond clearly and calmly.

  • We are not a once-a-year filing firm.

    Our role is to:
    • keep records clean
    • ensure decisions are intentional
    • flag issues early
    • adjust planning as income and complexity change

    You should always understand what is happening and why.

  • Yes. In fact, that is where structure matters most.

    As volume increases, small inefficiencies compound quickly.
    We work with high-volume agents to keep the business scalable without adding unnecessary complexity.

  • The first call is a working conversation, not a sales pitch.

    We review:
    • how you currently earn and pay yourself
    • whether a PREC exists or is being considered
    • where uncertainty or friction exists

    If there is a clear next step, we outline it.
    If not, we will say so.

  • Book a discovery call.
    We will determine quickly whether there is a fit and what level of support makes sense.

    If the answer is no, you will still leave with clarity.