Do you have a real estate accountant for your commercial real estate business?
My name is Michael Jacobson and I’m a Partner and real estate specialist at Stern Cohen Accountants in Toronto. For over sixty years, we’ve worked with clients in the real estate industry. If you’re a commercial or residential real estate investor, this article provides key factors to consider when choosing a real estate accountant for your holdings. With Stern Cohen, you’ll get a trusted advisor specializing in the real estate industry as well as a tax and estate planning specialist – both at the Partner level. Read on to learn more about what to look out for and the valuable guidance we provide.
If you have a commercial real estate or construction business, contact Stern Cohen for specialist support and advice.
Who We Assist
We provide real estate accounting services and tax guidance for the following:
- commercial and residential real estate holdings held in a corporation
- housing and real estate developers
- industrial, retail and high rise apartment buildings
- large scale residential subdivision or housing developers
- multiple rental properties: stand-alone or multi-tenant including mixed use properties
- lease and sales analysis
- someone running a professional condo business (with a building portfolio of 10+ condos)
- commercial and residential property managers
We can advise on the following matters and questions:
- tax strategies for closing on purchases
- costing analysis
- land transfer taxes
- income smoothing over time
- cash flow analysis and management advice
- property management service agreement structuring
- tax planning for sale of property and capital loss issues
- capital gains reserve and vendor takeback mortgage opportunities
- the consumer price index interest rate and how it impacts your business
- tax implications of real estate considered inventory or capital
*Please note: We do not service the following markets:
- individuals with a few rental properties
- mortgage investment corporations
- condo corporations (we can refer you to a specialist)
- audits for not-for profit co-operative housing organizations
- accounting and personal taxes for real estate agents
Real Estate Accounting Services
We’re well-placed to meet all of your needs because our team includes specialists for the real estate industry, tax preparation, accounting, audit or review financial statements, and estate planning. If you’re currently working with a sole practitioner or generalist accountant you might be missing out on high value advisory and tax planning that only a specialist team can provide. Canadian tax laws and the real estate market are complex and ever changing. That’s why having a tax specialist and accountant/advisor specializing in real estate is so important.
Audit and Review of Financial Statements
Our assurance team has extensive experience working with real estate companies for compliance with audit and review requirements whether from business investors or financial institutions.
Real Estate Tax Services including HST Assessments and Rental Income
There are many compliance tax requirements for newly constructed residential rental properties as well as commercial properties converted to residential rental properties. Failure to self-assess amounts due can result in hefty financial penalties, income taxes, and interest if the issue is identified by CRA auditors or tax authorities. If you have overpaid GST/HST, we can help you recover and we can reduce future GST/HST where rebates or savings are available given your situation and goals. Let our accounting firm manage the accounting and tax while you focus on development, sales and management.
Review of Credit Facilities and Financial Statements for Financing
We’ll do a cash flow analysis to access the cash needed to finance a property and provide a break even analysis to help you prepare for a loan application and ensure it’s a viable venture.
Real Estate Transactions (Buying a New Property or Capital Asset, Capital Gains)
We can outline an amortization schedule and complete a tax analysis to get a clear understanding of the tax implications of owning property. Our tax professionals will save you money and ensure you select the best option. Do you need to keep the bank happy with respect to a covenant? We have the financial literacy to help you present financial statements to your banker. Are you selling properties? We’ll help ensure you comply with CRA (Canada Revenue Agency) reporting requirements to avoid issues.
Tax Strategies
Our tax specialists can help minimize tax, and assist with tax planning.
Day to Day, Month to Month, Year to Year – You require Accounting and Tax Help
Let us assist with the day to day tax requirements. This includes calculating and making installments, maximizing tax deductions, HST consulting, compensation planning, and more.
Outsourced Bookkeeping and Payroll
For those who don’t want the expense of employing an internal full-time bookkeeper or controller, we also offer scalable bookkeeping, payroll and reporting services with the oversight of a CPA (Chartered Professional Accountant). Read more about our bookkeeping services and our unique FIT: Finance Team service.
