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Level 5
April 11, 2023
Question

Real EstateReferral Fee

  • April 11, 2023
  • 1 reply
  • 5 views

Client receives referral fee from Real Estate Agent for giving leads to him.  Where should we report his Referral Fee Income?

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1 reply

Level 7
April 11, 2023

If this is an individual who received a small referral fee from a real estate agent, it could be considered a "lottery, gift or windfall" in Canada, and would not be taxable.  If the person received it in the course of a business or employment, it would be taxed as business or employment income.  I have usually considered the amount as a gift for non-business, non-employee situations if it is the typical $500 or so amount.

 

If you chose to report it anyway and it is not business or employment, then put it on the "Other Income" form, on the blank line at the bottom of the section titled "Other income - line 13000".

Sunny81Author
Level 5
April 14, 2023

Thank you for the info.