"Professional Corporations" Save TAX for Real Estate Professionals
The interesting issue about the 2012 RECO election is that there are no issues.
As many of you know, I have offered to let my name stand as a candidate for election as a Director of the Real Estate Council of Ontario for a three year term commencing in June 2013.
So, I must have something to say! Or, why else would anyone vote for me?
I know that most of the time, registrants receive an election package and simply vote for someone that have heard about, or possibly even may know personally. However, that's rare. Most don't vote, at all. And, with many of those who do, they only have short profiles about each of the candidates. It's difficult for anything of substance to be conveyed.
Let's start with an issue and topic for the 2013 election?
I think real estate professionals, that is, brokers and sales representatives should be able to incorporate.
Remember that lawyers, accountants, architects, doctors, dentists and other professionals may incorporate, so why not registrants under the Real Estate and Business Brokers Act, 2002?
The advantages are quite straightforward: less income tax, now and in the future and preferential succession planning.
If you don't make any money now, you're not going to save any money by incorporating, but, still in all fairness, it should be your option. However, if you are planning to stay in the business, then you are planning to be successful. Why should you pay more tax than a lawyer or accountant making the same amount of money? It’s just not fair!
Here's the political promise: if I am elected I will support the appropriate amendments to the Real Estate and Business Brokers Act, 2002, and the Business Corporations Act, to permit brokers and sales representatives to carry on practice through a Professional Corporation.
Brian Madigan LL.B., Broker is a Candidate for election to the RECO Board of Directors, Region 1 (Toronto and the GTA), you may contact him through RE/MAX West Realty Inc., Brokerage 416-745-2300.