Realtor's Guide to Tax, Accounting and Saving Serious Money | Episode 46

Are you a Realtor in Ontario? Are you ready to save some serious money? This is the tax and accounting episode you have been waiting for! Brett Starkman, CPA, CA, Tax Partner with Schwartz Levitsky Feldman LLP (SLF.ca) joins David and David to share his accounting wisdom. The panel discusses Personal Real Estate Corporations (PREC) for Realtors. Is incorporating as a realtor a smart financial move for you? There are many considerations behind a PREC, especially taxes and saving money! Sit back and find out the reasons why a PREC may work well for you. Make sure you have a professional accountant and lawyer in place to further discuss your particular situation. Agenda: Exciting new opportunity for real estate agents to incorporate a Personal Real Estate Corporation (PREC) as of October 1, 2020. Potential tax advantages Is a PREC recommended for all realtors Types of investments that are available for a PREC Can a PREC trade in real estate? Will a PREC protect real estate agents against liability for professional negligence? Strategy of having a holding corporation in addition to a PREC Why should a lawyer be retained to incorporate and organize a PREC? All equity shares are legally and beneficially owned by the licenced real estate agent (Controlling Shareholder); Sole director and officer is the Controlling Shareholder; Who can own non-equity shares? Controlling Shareholder, family member of the Controlling Shareholder, or by trustees in trust for children of the Controlling Shareholder who are minors. Why does a brokerage have to get involved with a realtor setting up a PREC? What is the tri-party agreement between the PREC, the Controlling Shareholder and the brokerage employing the Controlling Shareholder Who gets paid the Commissions? Tax strategies of buying vs. leasing a car Should a realtor buy a car personally or through the agent’s PREC? ____________________________________________________________   Join us as we explore the ins and outs of the real estate market, and dive deep to understand the issues affecting buyers, sellers, investors and businesses. If you love real estate as much as we do, sit back, relax and gain an insider's edge to the exciting world of real estate. David Gorski is a broker and the owner of Sutton Summit Realty—a boutique brokerage providing guidance to over 230 realtors, and David Korman is a partner at Kormans LLP—a boutique law firm focusing on residential and commercial real estate transactions STAY CONNECTED: 🔗 Get a free consultation: https://linktr.ee/KormansLLP   ✔ INSTAGRAM: https://www.instagram.com/kormansllp/  ✔ TIKTOK: https://www.tiktok.com/@kormansllp  ✔ TWITTER: https://twitter.com/kormansllp  ✔ FACEBOOK: https://www.facebook.com/kormansLLP  ✔ LINKEDIN: https://ca.linkedin.com/company/kormansllp