Camrose Real Estate Accountant – BOMCAS Canada

BOMCAS Canada, your trusted Camrose Real Estate Accountant, specializes in providing comprehensive accounting, tax, and financial services tailored to the unique needs of real estate professionals and investors. We offer a full range of services, including bookkeeping, payroll for corporations and small to medium-sized businesses, and tax preparation and filing for corporations, sole proprietorships, and individual personal tax clients. We proudly serve clients throughout Camrose, Edmonton, and surrounding areas with flexible local and virtual accounting services, making it easy to manage your finances no matter where you are.

With over 15 years of experience, our qualified team is dedicated to providing complete accounting and tax solutions. When you need a reliable, one-stop provider of accounting and tax services, BOMCAS Canada is here to deliver a complete solution tailored to your specific needs.

Why Choose BOMCAS Canada for Real Estate Accounting?

Navigating the complex world of real estate accounting requires specialized knowledge and expertise. At BOMCAS Canada, we provide a combination of industry-specific experience, personalized service, and a commitment to helping you maximize your financial success. Here’s why choosing us is the right decision:

  • Expertise in Real Estate Accounting: Our team has in-depth knowledge of the unique financial challenges and opportunities within the real estate sector. We are adept at helping you structure your operations and investments in a tax-efficient manner.
  • Customized Solutions: We understand that each real estate investor or professional has unique needs. We provide personalized solutions that address your specific situation, whether you’re dealing with rental properties, development projects, or property management.
  • Proactive Tax Planning: Our accountants actively participate in your budget, planning, investment, and tax reporting activities, helping you make informed decisions and optimize your tax liabilities.
  • Comprehensive Service Range: From managing rental income and operating expenses to handling capital cost allowance (CCA) and property dispositions, we offer a full suite of services tailored to the real estate industry.
  • Accessible and Reliable Support: We provide both local and virtual accounting services to accommodate your needs. Our goal is to make your accounting experience as seamless and stress-free as possible.

Understanding Key Real Estate Accounting Concepts

BOMCAS Canada is committed to educating and empowering our clients with the knowledge they need to make informed financial decisions. Here are some key concepts in real estate accounting:

Rental Income: This refers to any payment you receive for the use or occupation of a property, such as houses, apartments, rooms, or office spaces. It’s crucial to track all sources of rental income accurately.

Rental Operations: This includes services you provide to tenants, such as heat, lighting, laundry, cleaning, or security. Understanding which expenses are part of rental operations can affect your tax deductions.

Rental Property: This is typically a building or leasehold interest owned by a taxpayer or partnership, primarily used to generate revenue from rent. The type of rental property can affect when it is considered available for use.

Availability for Use: For non-building rental properties, the availability for use date is usually the earliest of the date of first use to earn income, the second year after acquisition, or before property disposal. For buildings, this is the earliest of when construction is complete, 90% is rented, the second year after acquisition, or before disposal.

Capital Cost: This is the base amount on which you first claim capital cost allowance (CCA). It includes the purchase price (excluding land), legal and accounting fees, and the cost of additions or improvements. Understanding capital cost is essential for calculating your CCA correctly.

Capital Cost Allowance (CCA): This is the amount you can deduct over time for depreciable property used in your rental activities. It allows you to recover the cost of the property over its useful life and lower your overall tax liability. CCA can be claimed on buildings under construction once you start generating rental income from them.

Capital Property: This generally includes any property bought for investment purposes or to earn business income. It includes principal residences, stocks, bonds, land, buildings, and equipment used in your business or rental operations.

Detailed Guidance on Rental Property and Capital Costs

Our team at BOMCAS Canada provides detailed guidance to ensure you’re optimizing your tax and accounting strategies. Understanding the nuances of capital cost and CCA can significantly impact your financial outcomes.

We help you determine how to allocate legal and accounting fees between the cost of land and buildings. When land is acquired for rental purposes, we ensure those expenses are properly attributed. We also assist in the calculation of CCA, helping you deduct appropriate amounts based on your specific circumstances.

For properties under construction, renovation, or alteration, our professionals advise you on claiming CCA even before the property is available for use. We ensure that you have net rental income available to offset the CCA deduction and we help determine whether soft costs, such as interest, legal and accounting fees, and property taxes should be deducted as a current expense or be included in the capital cost.

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