Tax Season Guide for Mortgage Brokers: How to Organize Appraisal Documentation
Key deadlines, deductible expenses, and everything you need to know.
It's officially tax season, and Canadian mortgage brokers are facing a familiar challenge: organizing the mountain of documentation that accumulates over a busy year. While commission statements and expense receipts are obvious priorities, one category often gets overlooked until the last minute—appraisal documentation.
Here's why it matters and how to get ahead of it.
Why Appraisal Documentation Matters at Tax Time
Appraisals touch nearly every aspect of a mortgage broker's tax situation. They affect your reported income when deals fall through or get restructured due to valuation issues. They determine which costs might be deductible. And for brokers who own investment properties, they're essential for calculating capital gains accurately.
The challenge is that appraisal-related information is scattered across client files, email threads, and various systems. Pulling it together in April—when you're already juggling client demands and filing deadlines—creates unnecessary stress.
Download the 2025 Mortgage Broker Tax Season Checklist
Key Tax Deadlines for Canadian Mortgage Brokers
End of January Receive T4A slips and gather all prior-year documentation.
End of February Complete expense categorization and organize records.
Mid-March Meet with your accountant and pay quarterly instalments if required.
April 30 Tax payment deadline (applies even if self-employed).
June 15 Self-employed filing deadline (interest accrues from April 30).
Appraisal Records to Organize Now
Commission impact documentation. Did any deals get restructured because an appraisal came in low? Those commission adjustments need to be reflected accurately in your income reporting. Track which transactions were affected and by how much.
Potentially deductible costs. Rush fees you paid on a client's behalf, second-opinion appraisals for mortgage reconsiderations, professional consultations with appraisers—these may be deductible business expenses. The key word is "may." Your accountant will determine what qualifies, but they can't claim what you don't document.
Property records for investment holdings. If you own rental or investment properties, your appraisal records establish the baseline for capital gains calculations. This includes acquisition appraisals, pre- and post-renovation valuations, and documentation of capital improvements.
Home office calculations. For those claiming home office deductions, having a current appraisal or comparative market analysis helps establish fair market value. Just be thoughtful about Capital Cost Allowance claims—they can create complications when you eventually sell your home.
Provincial Considerations
Tax obligations vary significantly across provinces. British Columbia brokers need to track Property Transfer Tax calculations and be mindful of the Speculation and Vacancy Tax in designated regions. Ontario brokers deal with both provincial and municipal land transfer taxes, plus the Non-Resident Speculation Tax for properties in the Greater Golden Horseshoe. Quebec requires an entirely separate provincial return.
Whatever your province, appraisals often play a role in these calculations, so keep them organized accordingly.
Download the 2025 Mortgage Broker Tax Season Checklist
Capital Gains and Reporting Requirements
For 2024 and beyond, capital gains inclusion rates have changed. The first $250,000 in gains is included at 50%, while amounts above that threshold face a 66.67% inclusion rate for individuals. Accurate appraisal documentation—establishing both your adjusted cost base and proceeds of disposition—directly affects how much tax you owe.
And don't forget: if you sell your principal residence, you must report it on Schedule 3 of your tax return. This requirement has been in place since 2016, and failure to report can trigger penalties even when no tax is owed.
Record Retention and Long-Term Storage
CRA requires you to keep most tax records for six years from the end of the tax year. But property-related documents? Those need to be retained until six years after you dispose of the property. For a rental property you hold for decades, that's a long time to maintain records.
Digital storage is acceptable—just ensure files are readable and accessible if CRA comes calling.
