Personal Real Estate Corporations (PREC) - Ontario

The core PREC advantage is leaving income in the corporation taxed at the lower corporate rate and drawing it out over time. Realizing that benefit means planning how and when you pay yourself, year after year. We coordinate your corporate and personal tax so the deferral is captured rather than quietly lost to default decisions.

A realtor's income and expenses - commissions in, brokerage fees, marketing, vehicle, and the rest out - need books that keep pace. We maintain accurate records and prepare your corporate filings so the PREC delivers the advantage it was created for.

A Personal Real Estate Corporation only delivers its benefits if it meets and maintains the specific conditions RECO and TRESA impose on ownership, control, and naming. Set up casually, it can create regulatory exposure that outweighs the tax saving. We handle the incorporation correctly and keep the structure compliant year over year, so the vehicle you created to save tax does not become a source of risk with your regulator.

Not every agent should run a PREC. The advantage depends on your income, how much you can leave in the corporation, and your personal cash needs - and below a certain threshold the compliance cost outweighs the benefit. We will model your actual situation and give you a straight answer, because steering you into a structure you do not need would help no one.

The real PREC advantage is leaving income in the corporation at the lower rate and drawing it out over time - but that only works if you plan how and when you pay yourself, every year. We coordinate your corporate and personal tax so the deferral is realized deliberately rather than lost to default decisions, and we keep your commission income and expenses cleanly accounted for underneath it all.