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Hi,

I am a Real Estate agent and I have a confusion when it comes to where to claim my brokerage commission split deduction when applying for tax. I have 90/10 split with my brokerage. I am not sure if I should claim these as expenses or include them under "PST, GST/HST, returns, allowances, discounts included in sales, & GST/HST adjustments" in form T4002. In principle they are not part of my gross income as the split happen before I even receive the money.

My T4A (Box 20) includes the total commission before the split. However the GST/HST I remit is only based on my 90% I receive.


In the past I used to claim the 10% portion of the split as expense .. but this cause a mismatch between Line 166 in T1 (which is the amount same as T4A box 20) and my HST line 101, CRA GST/HST came after me because of this mismatch.

Now I am wondering whether I should include the 10% brokerage commission under "PST, GST/HST, returns, allowances, discounts included in sales, & GST/HST adjustments" in T4002 rather than consider it as expense. Bascially "PST, GST/HST, returns, allowances, discounts included in sales, & GST/HST adjustments" will include the HST amount + 10% brokrage comission .. is that a correct practice? This will insure than line 166 in T1 will match line 101 for the HST, but it will cause line 166 in T1 to mismatch my T4A box 20.

In Summary in T4002, I am wondering if this is ok:

(1)-Gross sales, commissions or fees including GST/HST collected or collectible: T4A amount + GST/HST.
(2)-PST, GST/HST, returns, allowances, discounts included in sales, & GST/HST adjustments: GST/HST + 10% Comission from Brokrage
1-2, Line 166: My Gross Adjusted Comission excluding HST and excluding Brokrage cut.

Please help,
 
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