A PREC (or Personal Real Estate Corporation) gives a realtor the ability to receive their business income through a corporation. This has only been recently available in Ontario, and only applies to a real estate agent, not a real estate investor. One advantage of a PREC is that realtors can defer income tax. 12.2% tax rate for income up to $500,000, as opposed to 29.65% taxed at $50,000 for personally earned income. A PREC also allows many expenses to be tax deductible, and can create income splitting with family members. As a realtor, there are many advantages to setting up a PREC. If you need any help setting up a PREC, our experts at Dely & Associates can walk you through the process.