Accountant for the real estate industry

In Quebec, rental real estate is managed one property at a time: plexes and multi-unit buildings in Montreal, Quebec City, or Gatineau; commercial spaces; conversion projects; and tourist accommodations. Each property has its own set of records: rent, operating or capitalizable expenses, mortgage, transfer taxes, and renovations. Add to that the CCA, recapture upon resale, the “quick resale” rule, and GST/QST treatment that varies by use (long-term residential is exempt, while commercial and short-term are taxable), and bookkeeping quickly becomes a profession in its own right.

Find the ideal accountant for your real estate portfolio: someone who tracks profitability by property, structures ownership (as an individual, a corporation, or a management company), and plans for resale before it happens. We’ll connect you with the right accountant for this sector, as many times as needed, and we’ll stay by your side. No obligation.

• Cash flow vs. taxable income: A major renovation is capitalized (CCA, generally 4% per year); it is not deducted all at once like a routine repair.
• Long-term residential rentals exempt from GST/QST: no input tax credits; taxes paid on construction work and professional fees increase the actual cost by 14.975%.
• Short-term lodging: 5% GST and 9.975% QST collectible above the $30,000 small supplier threshold, plus the 3.5% lodging tax and CITQ registration fee.
• Resale within 365 days: The “quick resale” rule treats 100% of the profit as business income, not as a capital gain.
• CCA: Today’s tax savings become a taxable recapture of depreciation upon resale; the tax efficiency depends on your holding period.
• For corporations, rental income is generally considered passive income: it’s subject to a high tax rate, and once passive income exceeds $50,000 per year, the small business deduction limit begins to erode.
• Financing and Refinancing: Lenders require up-to-date financial statements for each property; solid bookkeeping on a per-unit basis speeds up your acquisitions.

• Tax return for rental income: Form T776 at the federal level and Form TP-128 in Quebec for individuals; Form T2 and Form CO-17 for corporations.
• RL-31 slips must be prepared and provided to each residential tenant no later than the last day of February.
• GST/QST: Commercial rents and short-term rentals are taxable; long-term residential rentals are exempt, with no input tax credits or refunds.
• Tourist Accommodations: Mandatory CITQ registration and collection of the 3.5% lodging tax.
• New or converted residential building: self-assessment of GST/QST based on fair market value at the time of the first lease, with a refund available for new rental properties to be appraised.
• Upon Sale: Calculation of capital gains, recapture of the CCA, allocation of land and building values; tax election under Section 45(2) or 45(3) upon a change in use.
• Tracking fixed assets by property: acquisition cost, transfer taxes, fees, and capitalized renovations.

Should I Hold My Properties Through a Corporation? It depends on your goals: asset protection, financing, or estate planning. Note: Rental income earned through a corporation is generally considered passive income, which is taxed at a high rate, and once your passive income exceeds $50,000 per year, the small business deduction limit begins to diminish. An accountant specializing in this sector will review the financial projections with you before you incorporate.

Is the capitalization deduction a good idea? Sometimes yes, sometimes no. The CCA (generally 4% per year for a property) reduces your taxes today, but it is recaptured and taxed upon resale, and it cannot create a rental loss for an individual. If you plan to sell soon, the tax savings could end up working against you. This is exactly the kind of tax planning a specialized accountant will help you navigate.

How much does an accountant cost in this sector? According to the Bankeo Fee BarometerBased on 1,248 real-world cases (2024-2026), the median cost for this sector is around $1,500 per year. The cost varies depending on whether you are a corporation or a self-employed individual, as well as the volume and complexity of the work. Bankeo’s matching service is free: you pay your accountant directly.

How do you switch accountants when you own multiple properties? It’s simpler than you think. Your T776 or TP-128 schedules, your depreciation schedules by property, and your financial statements can be transferred from one professional to another, and the new accountant will pick up where the previous one left off. The right time: after tax season or before refinancing. We’ll connect you, for free, with an accountant who specializes in rental properties, and we’ll stay by your side throughout the transition.

Local or Remote Real Estate Accountant? Both work very well. Bookkeeping for each property is easily handled remotely using scanned documents and a secure portal. The key is an accountant who is well-versed in Quebec regulations: RL-31 slip, transfer taxes, and GST/QST as applicable. Bankeo first matches you based on your real estate specialty, then according to your location preferences.

Does renting out a property for short-term stays on Airbnb affect my taxes? Yes, and not just a little. Tourist lodging requires registration with the CITQ, collection of the 3.5% lodging tax, and, above the $30,000 small supplier threshold, GST and QST. The transition from long-term to short-term rental may also constitute a change in use with tax implications upon resale. An accountant specializing in this sector will walk you through all of this before you post your listing.