Realtor Cash-back – Tax implications clarified 经纪返佣的税务问题

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Below is the toipe about realtor’s tax issue

The question of tax implications has come up several times when it came to cash-back rebates from realtors. So, I called CRA today to specifically ask this and need to provide this update for clarity to all:

For the realtor:

Commission rebate is considered a deductible business expense (so long as it was used to earn business, and only applies to people at arm’s length – i.e. not family members)
对经纪来说, 属于业务开支。

For the clients:

对客户来说, 如果收入来自于商业/出租,那么业主需要报税。 如果是来自于自住物业产生, 就不需要报税。
If the property is income producing (commercial/rental), then the amount of rebate is subtracted from the cost of the property to create a new adjusted cost base. The onus effectively falls onto the property owner to report this in their taxes.
If the property is a principal residence, there are NO TAX IMPLICATIONS, i.e. the amount is not taxable and no T4A needs to be issue

Realtor Cash-back – Tax implications clarified 经纪返佣的税务问题