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
1146 posts
58 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 Fanatic
Mar 27, 2004
5092 posts
3124 upvotes
Toronto
You get your brokerage to issue the cheque to the buyers.
Full-time Realtor
[OP]
Deal Addict
Oct 3, 2005
1146 posts
58 upvotes
oasis100 wrote: You get your brokerage to issue the cheque to the buyers.
My brokerage stopped doing that a while back.
Deal Fanatic
Mar 27, 2004
5092 posts
3124 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
Deal Addict
Feb 19, 2019
1033 posts
1391 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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