Who this applies to
Licensed BC real estate agents who earn their commission through a Personal Real Estate Corporation. If you are not incorporated, see our personal tax page instead. The checklist there is shorter.
One thing most people do not realize
Salary and dividends paid by the PREC have to match on two returns: the corporation’s T2 and your personal return. Money taken out during the year without deciding what it was cannot be re-labelled at year end to whichever is cheaper. The label has to be decided when the money moves.
Why there are two lists
A PREC means two taxpayers: the corporation and you. The corporation files a T2 return for its fiscal year. You file a personal return for the calendar year. What the corporation paid you, as salary or dividends, has to match on both. So the year end works best when both sets of records arrive together.
For the corporation
- Commission statements from your brokerage for the fiscal year
- Bank and credit card statements for every account in the corporation’s name
- Expense records: licensing and board fees, marketing, signage, vehicle, phone, office, client gifts, staging, courses
- GST returns filed during the year and payments made
- Last year’s T2 and Notice of Assessment
- Payroll records, if the corporation paid you a salary
- A note of every other payment from the corporation to you, with what it was for
- Anything the corporation bought that lasts more than a year: a vehicle, computer, equipment
- The corporation’s business number and fiscal year end
For you personally
- Any T4 or T5 slips, including ones the corporation issued to you
- Your own receipts: RRSP, medical, donations, childcare, tuition
- Last year’s personal Notice of Assessment
- Rent or property tax paid, for BC credits
- Any other income: rental property, investments, a second job
Three questions to settle before the appointment
How did you pay yourself? Salary, dividends, or a mix. If you took money without deciding, that is fine, but tell us the amounts and dates so we can treat them correctly.
Did you pay for anything personal from the corporation, or anything business from your own pocket? Both are common. Make a short list. It is much faster to sort out at year end than at a CRA review.
Did anything change? A new vehicle, a new brokerage, a home office, a family member helping in the business. Each one affects the return.
What we do with it
We prepare the T2 for the corporation and your personal return, coordinated so the salary and dividend figures match. We tell you what to keep for next year, and we suggest a simple habit for tracking owner payments so next year’s list is shorter.
What this checklist does not cover
Whether to set up a PREC in the first place, or how to structure salary and dividends for the future, are separate conversations. A PREC also brings BCFSA reporting and licensing costs of their own. Ask us and we will tell you what we can help with and when you need a lawyer or your brokerage.
Official sources
- BCFSA: Personal Real Estate Corporation guidelines
- CRA: Corporation income tax return (T2)
- CRA: Keeping records
This guide is general information, not advice about your situation. It reflects the rules for the 2025 and 2026 tax years. It has not yet been reviewed by a practitioner. The information was checked against the official sources listed above on the date shown. Rules change. Check the official sources above or ask us. How we prepare these guides.