Real Estate

As an agent, how to claim rebate given to client for taxes

  • Last Updated:
  • May 13th, 2019 9:51 pm
[OP]
Deal Addict
Oct 3, 2005
1046 posts
31 upvotes

As an agent, how to claim rebate given to client for taxes

Hi All,

How are current agents claiming the cash they give back to their buyer clients as rebates? For instance if I gave 1% back to my client after the transaction. How can I claim it as an expense so I won't have to pay income tax on that amount? What will I need from the buyer client and can he get away with not claiming that as income?

Any seasoned agents out there? Or accountants?

Thanks.
6 replies
Deal Addict
Mar 27, 2004
3568 posts
995 upvotes
Toronto
You get your brokerage to issue the cheque to the buyers.
Full-time Realtor
Award Winning Realtor.
[OP]
Deal Addict
Oct 3, 2005
1046 posts
31 upvotes
oasis100 wrote: You get your brokerage to issue the cheque to the buyers.
My brokerage stopped doing that a while back.
Deal Addict
Mar 27, 2004
3568 posts
995 upvotes
Toronto
Issue a cheque yourself. up to your buyer to deal with an tax complications. file it as expense with your accountant. should be suffice.
Full-time Realtor
Award Winning Realtor.
Sr. Member
Feb 19, 2019
542 posts
487 upvotes
Stouffville ON
The payment you issue to the buyer will be your expense. As a backup, if CRA ever ask you have a copy of the cheque and copy of the contract. Details are already posted in the links in above replies.
Full Time and Full Service Realtor

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