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Realtors Now Able to Incorporate |
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As of January 1, 2009 realtors in Canada have been able to incorporate. This is great news from a tax perspective, and allows realtors the tax advantages that incorporating permits. There are several advantages to incorporating, but the main ones are tax deferral and income splitting.
In tax deferral, one is able to benefit by paying a lower corporate tax rate on profits if one is earning more than is needed to live on. For example, the highest marginal tax rate in Ontario for individuals is 46.41%; the highest rate for businesses under $400,000 net income is 16.5%. This is a considerable savings. If, for example, a realtor has excess of even $50,000 as an individual she would pay $23,205 in taxes, whereas the corporation would pay only $8,250. The savings by incorporating is $14,955. This can be invested through the corporation, making for further gains in income in the years ahead. As the saying goes, “It takes money to make money.” And this gives realtors more money to increase their income – significantly!
If you're considering incorporating, read all about how you can incorporate yourself!
Only $27.00!
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