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Your Hidden Partner How to handle your taxes
Taxes: How much do you owe? <ul><li>A great many people in the real estate profession suffer from constant anxiety about the amounts they owe Revenue Canada for Income Tax </li></ul>
Taxes, Taxes, Taxes <ul><li>Why are realtors prone to be the seeming whipping boys of the Tax Department? </li></ul><ul><li>The reason may lie in the fact that they forget they have a hidden partner </li></ul>
What Causes us to “Forget”? <ul><li>This forgetfulness can be traced to the fact that earnings in the real estate profession are erratic </li></ul><ul><li>It seems like it is either a feast or a famine </li></ul><ul><li>Only the very high producers seem to be immune to the Tax Department garnishee </li></ul>
What is the Solution? <ul><li>Set aside at least 40% of every sale </li></ul><ul><li>This is not as easy as it sounds. You must budget well so that you can make these payments to cover the tax on your sales </li></ul>
What is the Solution? <ul><li>Keep track of your sales and then every month, discuss your position with your Tax Accountant </li></ul><ul><li>Remember that your manager and the staff have enough to do without having to deal with the Garnishee from the Tax Department </li></ul>
Budgeting is the Key <ul><li>It may be that you will have to make larger payments during the feast months and more or none during the famine months </li></ul><ul><li>Rest assured, a system of budgeting will alleviate a great deal of worry and keep the “hidden partner” from harassing you </li></ul>