Real Estate Accountant

In Quebec, rental properties are managed one unit at a time: plexes and multi-unit dwellings in Montreal, Quebec City, or Gatineau, commercial spaces, conversion projects, and tourist accommodations. Each building has its own file: rents, current and capital expenditures, mortgage, transfer taxes, and renovations. Add to that capital cost allowance (CCA), capital recapture upon resale, the rule against sudden sales, and VAT treatment that varies depending on the use (long-term residential exempt, commercial and short-term taxable), and bookkeeping quickly becomes a profession in itself.

Find the ideal accountant for your real estate portfolio: someone who tracks profitability per unit, structures ownership (personal, corporate, or management company), and plans for resale before it happens. We'll introduce you to the right accountant for your sector, as many times as you need, free of charge, and we'll stay by your side every step of the way. No obligation.

• Cash flow vs taxable profit: a major renovation is capitalized (DPA, generally 4% per year), it is not deducted all at once like a routine repair.
• Long-term residential rental exempt from VAT: no input tax credit, taxes paid on work and fees inflate the actual cost by 14.975%.
• Short-term accommodation: GST 5% and QST 9.975% to be collected above the small supplier threshold of $30,000, plus the accommodation tax of 3.5% and CITQ registration.
• Resale in less than 365 days: the rule of rushed resales imposes the profit at 100% as business income and not as capital gain.
• DCA: Today's tax savings become a taxable recapture of depreciation upon resale; the trade-off depends on your holding horizon.
• In a corporation, rental income is generally passive income: high tax rate, and beyond $50,000 of passive income per year, the small business deduction cap erodes.
• Financing and refinancing: lenders require updated financial statements per building; solid bookkeeping per unit speeds up your acquisitions.

• Declaration of rental income: form T776 at the federal level and TP-128 in Quebec for an individual; T2 and CO-17 for a corporation.
• Statement 31 (RL-31) to be produced and given to each residential tenant no later than the last day of February.
• VAT: commercial rents and short-term accommodation are taxable; long-term residential rentals are exempt, without credits or refunds on inputs.
• Tourist accommodation: CITQ registration is mandatory and the 3.5% accommodation tax must be collected.
• New or converted residential building: VAT self-assessment on the fair market value at the first rental, with refund for new rental building to be assessed.
• On sale: calculation of capital gains, recovery of DPA, allocation of land/building; tax choices 45(2) or 45(3) when changing use.
• Fixed asset tracking by building: acquisition cost, transfer taxes, fees and capitalized renovations.

Should I hold my properties in a corporation? It depends on your objectives: asset protection, financing, or succession planning. Be aware that rental income held in a corporation is generally passive income, taxed at a high rate, and beyond $50,000 in passive income per year, the small business deduction limit is reduced. Consult an accountant specializing in this sector to review the financial scenarios with you before incorporating.

Is the capital cost allowance (CCA) a good idea? Sometimes yes, sometimes no. The CCA (generally 4% per year for a building) reduces your tax today, but it is recouped and taxed upon resale, and it cannot create a rental loss for an individual. If you plan to sell soon, the savings could work against you. This is precisely the trade-off that a specialist accountant can help you make.

How much does an accountant cost in this sector? According to the Bankeo Barometer , based on 1,248 real-world cases (2024-2026), the median cost for this sector is around $1,000 per year. The cost varies depending on whether you are an incorporated company or a self-employed individual, as well as the volume and complexity of your work. Bankeo matching is free: you pay your accountant directly.

How do you change accountants when you own multiple properties? It's simpler than you think. Your T776 or TP-128 forms, your depreciation schedules for each property, and your accounts are transferred from one professional to another, and the new accountant picks up where you left off. The best time is after tax season or before refinancing. We'll introduce you to an accountant who understands rental properties, free of charge, and we'll support you throughout the transition.

Local or remote accountant for real estate? Both work very well. Bookkeeping for each property is easily done remotely with digitized documents and a secure portal. The key is an accountant who is familiar with Quebec regulations: T4 31 slips, transfer taxes, and VAT as applicable. Bankeo connects you first based on real estate specialization, then based on your preferred location.

Does renting out a property on Airbnb for short-term stays change my taxes? Yes, and significantly so. Tourist accommodation requires registration with the CITQ (Quebec Tourism Industry Corporation), collection of the 3.5% accommodation tax, and, above the $30,000 small supplier threshold, GST and QST. Switching from long-term to short-term rentals can also constitute a change of use, with tax implications upon resale. Consult an accountant specializing in this sector to navigate all of this before you publish your listing.