Bookkeeping for rental properties and holding companies
Holding rental property through a corporation only works if the books are as organized as the structure. We track income and expenses property by property, keep capital improvements separate from repairs, and hand our CPA partners a clean file at year end.
What makes these books different
Per-property tracking
Rent, strata fees, property tax, insurance, and mortgage interest recorded against the property they belong to, so each one's return is visible.
Capital vs. repairs
A new roof and a patched roof are treated very differently for tax. Capital improvements are depreciated over time; repairs are generally deducted in the year.
Shareholder loans
Personal money going in and corporate money coming out is tracked through the shareholder loan account. Balances left unresolved can create unexpected personal tax.
Security deposits
Tenant deposits recorded as liabilities, not income — they belong to the tenant until the tenancy ends.
Compliance we keep on top of
The small business deduction
Rental income earned by a corporation is often income from a specified investment business, which generally isn't eligible for the small business deduction unless the company has more than five full-time employees. That changes how much tax to set aside.
GST on rent
Long-term residential rent is generally GST-exempt, while commercial rent is usually taxable. Mixed-use buildings and short-term rentals need a closer look.
Property declarations
BC's Speculation and Vacancy Tax and, in Vancouver, the Empty Homes Tax require annual declarations from many owners. We keep occupancy and rental records organized so declarations are quick to complete.
Services for this industry
Common questions
Should my rental properties be held in a corporation?
That's a question for a CPA or tax lawyer — it depends on your income, financing, and long-term plans. If you already hold property in a corporation, or decide to, we keep the books that make it work.
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