This is misleading, a bill was introduced. It has not received Royal Assent to become law. Bills like this have been introduced 3 times over the past several years and failed. Granted, this one is actually sponsored by the MGS so it might pass, but it is not law.rammar wrote: ↑Nov 20th, 2019 9:05 amHi Guys,
just wanted to get some input. Last night in Ontario legislation passed to allow realtors to incorporate. I didnt realize they weren't allowed before in Ontario. I am currently going thru the OREA courses to become an agent.
Can someone please enlighten me on this. Is this a huge deal?..how does it affect the industry going forwards? Thanks
https://www.ola.org/en/legislative-busi ... 145/status
For part timers it will be good. You draw T4 income from your day job and assuming you don't need income from being an agent it can be sheltered in the corp until you are in a lower marginal bracket. Same with good agents, they can use it to tax plan.eonibm wrote: ↑Nov 20th, 2019 10:43 amNot really as the CRA rules on the deduction of expenses are exactly the same whether you are incorporated or not. However, it will provide limited liability, but then your RECO insurance covers that except for insanely narrow situations. Keeping your earnings in the corporation for 10+ years and receiving a positive return will result in marginal tax savings but then who keeps $ in a corp that long? Almost no one, especially on an real estate salesperson's income. So, basically incorporating is a non-event and will just increase your cost of operating due to filing requirements, cost of preparing financial statements and corp tax returns and the like, etc.