Real Estate

Realtor Cash-back – Tax implications clarified

  • Last Updated:
  • Apr 29th, 2020 10:57 am
Sr. Member
Feb 19, 2019
823 posts
888 upvotes
Stouffville ON
Clueless Fox wrote: I would notify the realtor who issued you the T4A about this and also not report for your taxes. You’re correct, there should be no tax implications.

In the unlikely event of an inquiry from CRA you can prove that your purchase was of a primary residence and show corresponding proof (bills, ID’s, etc). You can refer to the ruling that I was directed to as well.

All the best
He actually needs to ensure that the issuer cancels the T4A, if the slip is not properly cancelled and he doesn't report he will be re-assessed for taxes owing. He maybe able to prove it is not taxable but it will be a battle, there will be no issues if the slip is cancelled properly.
Full Time and Full Service Realtor
Newbie
Apr 20, 2020
12 posts
3 upvotes
Hi All,

Thanks for informative and useful inputs.

I just wanted to check that should we get kickback understanding in writing from a realtor or it is by words of mouth?

Thanks
Deal Addict
Mar 27, 2004
4529 posts
2152 upvotes
Toronto
DGangar wrote: Hi All,

Thanks for informative and useful inputs.

I just wanted to check that should we get kickback understanding in writing from a realtor or it is by words of mouth?

Thanks
It should be documented in the Buyer Rep Agreement (BRA)
under the section for commission.
Full-time Realtor
Newbie
Apr 20, 2020
12 posts
3 upvotes
Thanks for the response.

My agent seem to have not added that in BRA and I should have found out on this before. Can it be amended now? Also if in case, we are not happy with the realtor can we change it?

Thanks in advance.
Deal Addict
Mar 27, 2004
4529 posts
2152 upvotes
Toronto
yes you can amend
yes you can terminate. the bra is with you and the brokerage. not you and the agent. you can get a release from the bra . if agent refuses, go talk to his /her broker broker of record.
Full-time Realtor
Deal Addict
User avatar
Mar 14, 2006
4341 posts
763 upvotes
oasis100 wrote: yes you can amend
yes you can terminate. the bra is with you and the brokerage. not you and the agent. you can get a release from the bra . if agent refuses, go talk to his /her broker broker of record.
well legally speaking, the brokerage is the agent, you cannot call a salesperson or broker an agent.

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