Introduction to Personal Real Estate Corporations (PREC)
British Columbia is the first Canadian province to allow individual real estate licensees to form personal real estate corporations (PREC). Under the Real Estate Services Act and the Real Estate Services Regulation, REALTORS® can take advantage of the benefits of incorporation including better planning of income and tax streams in a manner similar to other professions such as dentists, accountants and lawyers. However, the benefits of working through a Personal Real Estate Corporations (PREC) is a question many REALTORS®, be they new or seasoned in the business, usually ask when they pay the taxes due on their personal tax returns!
Considering operating via a PREC? This course will provide you with a clear understanding of what benefits are available as well as what regulatory requirements are involved.
If you anticipate a profit from your real estate business of more than $50,000 in the next year or two this is a course for you. However, if you are a U.S. citizen or hold a U.S. Green card there may be no tax advantages to setting up a PREC.
Presented by a former CRA auditor and a CPA with over 25 years in tax preparation and consulting, this is a must seminar for all members considering a PREC.
Learning objectives:
- Define Personal Real Estate Corporations
- Identify and apply regulations that affect a Personal Real Estate Corporation
- Explain the steps involved to set up and maintain your Personal Real Estate Corporation
- Identify the tax benefits of a Personal Real Estate Corporation
- Recognize and analyze the ongoing costs, tax and regulatory filings
- Use a cost benefit analysis to assess the viability of establishing your Personal Real Estate Corporation
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