When it comes to accounting for real estate agents, you need to select the right accountant expert for your business to execute the right real estate tax knowledge that supports your best interests. When assessing a real estate accountant that is best fit for you, it is important to choose an accountant that is specialized in real estate, at Ebrahimi Accounting, we have specialized accountants for each industry. Choosing an accountant that is specialized in real estate over a generalist means they have an understanding of your day-to-day operations, and have a great understanding of all the ins and outs of real estate agent and real estate firm tax credits, working to your best interest in protecting your assets, advising on smart investing, and correct handling of financials. Paying for specialized services pays off in the value it adds to your investment strategy.
Vancouver’s housing market is hot. Choosing the right real estate accountant in Vancouver will take the burden of organizing your finances from your shoulders, helping you focus more on your clientele, showcases, and overall growth.
How to choose a real estate accountant
An accountant specialized in Real Estate
As noted above, it is crucial to find an accountant expert that is specialized in real estate accountant. Specialized real estate accountants at Ebrahimi Accounting are fully aware of the delicacy of real estate accounting, making the best decisions for your business. A specialized accountant creates positive impacts on your taxes, HST and returns, financial planning, bookkeeping; providing you with a full picture of missed opportunities and areas of advantages you can take to boost your growth.
An accountant that is up to date with rules and regulations
Real estate rules and regulations are constantly shifting and evolving. Real estate accountants must be up to date on these changes. An accountant specializing in real estate provides you with more detailed information that is specific to your industry, helping you to make the right judgement for you and your business.
Choosing an accountant using accurate reporting procedures
Accurate reporting using accurate numbers is crucial for conducting monthly reviews, forecasting future projections, finding areas of improvement, and improving financial habits. When your financial data is correct and properly formulated, you can pull reports for your business accounts such as:
- Profit and loss (P&L) statements
- All available income streams
- Outgoing cash flow
- Tax documents
A real estate accountant with the goal for you to achieve yours
A good accountant is someone who will respond to your questions and concerns quickly. Regardless of your choice of contact. A good accountant is an accountant that explains complicated topics in a language that you understand. Both you and your real estate accountant should be in sync with the end goal. Choose an accountant that understands your wants, needs and is implementing the strategies that work in your favour!
Our tax accounting services for real estate agents
Most real estate agents in Vancouver operate as independent contractors or are sole proprietors of their businesses. Although it brings certain freedom, it also increases financial responsibilities. Real estate agents and brokers face additional reporting and tax requirements, however, there are additional tax credits available. Ebrahimi Accounting Real Estate Accountants have real estate tax accountants in Vancouver that have decades of specialized experience preparing and filing realtor and PREC taxes, ensuring required forms are filled and all entitled tax deductions have been explained.
Tax deduction benefits
There are many real estate agents that miss out on funds when they don't fully utilize available tax credits and deductions. Tax deductions can be used to your benefit to help minify expenses and increase your net income. Relatable expenses to your real estate business and operation are deductible, reasonable in the amount being deducted, and ordinary and necessary in your business.
Common deductible expenses:
Listed below are common deductions related to your business that can be used by real estate agents during their tax filing.
Marketing Expenses
Marketing and advertising are great ways to increase future clients, showcase your business, and beat your competitors. Although many realtors see marketing as a costly investment, tax deductions are available for the associated expenses, these expenses include but are not limited to:
- Website design and development
- Social media management
- Print and newspaper advertisements
- Online and digital advertisements
- Business cards
- Event sponsorships
Travel, Mileage, and Transportation
Going from property to property to sell, speaking with clients, or monitoring a network of properties requires a lot of time and travel. Don’t make the mistake of forgetting to include these numbers in your real estate accounting procedures.
Association Fees and Expenses
Depending on employment status, real estate agents may be required to share some of their commission as a percentage with a brokerage or firm. This amount is considered an expense. Additionally, real estate professionals often pay for membership fees to associations and other national organizations, which may count as deductions.
Office-related Charges
Although fairly basic, your job duties might require the use of standard office supplies, equipment, and other administrative tools. Larger expenses would include office rentals, event space, and recurring services such as cleaning or maintenance. As more real estate professionals operate in a mobile format, these costs may be minimal.
Continuing Education Costs
Maintaining a real estate license costs money in the form of renewals and continuing education classes. Consider these costs expenses, and make sure that your accountant is able to include these amounts in your costs for the year.
Other deductions that are available!
- Accounting and bookkeeping fees
- Business meals and entertainment
- Legal fees
- Professional dues
- Computers/Laptops, Computer software
- Internet access
- Insurance
- Interest charged on business cards
- Cellphone and telephone expenses
- Wages paid to employees
- Employee paid benefits
At Ebrahimi Accounting
Ebrahimi Accounting is a full-service accounting firm with the goal to only provide you with the top real estate accounting services in Vancouver and across British Columbia through our online accounting services. For more information contact us at 604-757-1279 or send an email to sc@ebrahimiaccounting.com
