Accounting and Assurance

Personal Real Estate Corporations (PREC)

Startup and Tax Planning Services for Personal Real Estate Corporations in Ottawa and the Surrounding Area

As of October 1, 2020, real estate professionals gained the ability to incorporate a Personal Real Estate Corporation, otherwise known as a PREC. This is a monumental change for those who earn their income through real estate broker and agent services, particularly with respect to the tax planning opportunities it provides.

At McCay Duff LLP in Ottawa, we provide comprehensive services to real estate professionals to help them maximize their benefits under this new opportunity. Our Chartered Professional Accountants will provide guidance on how best to structure your PREC and advise you on strategies to allocate your income going forward.

What are the Tax Benefits of a Personal Real Estate Corporation?

Prior to these changes, real estate professionals were required to report their income and pay taxes as a self-employed individual. Under the new legislation, they can instead earn their income through a corporation, which enables them to take advantage of extremely favourable tax rates and deferrals.

Creating a Personal Real Estate Corporation (PREC) provides an opportunity to access numerous potential benefits including, but not limited to:

  • Deferral of tax on excess income;
  • Income splitting with family;
  • Individual remuneration planning tailored to your needs;
  • Optimal business exit tax planning opportunities; and
  • Advanced estate planning.

Contact McCay Duff LLP in Ottawa for Strategic Advice on Establishing and Maintaining a Personal Real Estate Corporation (PREC)

At McCay Duff LLP, we will work with you to determine your annual income expectations and tax goals in order to provide you with personalized advice on how best to structure your Personal Real Estate Corporation (PREC). We will provide ongoing, proactive advice to ensure you are taking advantage of all available opportunities for tax minimization throughout your real estate career as well.

To learn more about how the Chartered Professional Accountants at McCay Duff LLP can assist you or your business, please contact us online, or by telephone at 613-236-2367 or toll-free at 1-800-267-6551.