Who should use the T1135 form?
If you own foreign property that is valued at more than C$100,000 at any time during the year, you have to file the T1135 form, also known as the Foreign Income Verification Statement.
What kind of property do I have to declare when reporting foreign income?
Cash, stocks, land and buildings that are not in Canada. A bank account in the U.S., a home that you still own in another country after moving to Canada, an inheritance that is still overseas and foreign corporation stocks are considered foreign property. If you held more than 10% shares in a non-resident corporation, you may have to file the form as well.
What are types of property that I don’t have to declare?
You do not have to declare mutual funds registered in Canada that invest in foreign stocks, personal property like works of art, jewelry, rare folios, rare manuscripts, rare books, stamps, and coins, vacation property that you use primarily as a personal residence, funds in a registered retirement, income or pension plan, or property exclusively related to your active business.
Are there any penalties for not reporting foreign income?
The T1135 penalty is $25 a day up to a maximum of $2,500 per year you had to file the form. If you missed a year, submit the form(s) through the CRA’s Voluntary Disclosure Program to correct previous tax returns.
Our TurboTax Tips on Declaring Foreign Property will provide you with further details.
Use our new Free Canadian Tax Software to help ensure you don’t miss any of the deductions or credits you deserve. It’s Easy, fast and 100% accurate, guaranteed. For more info on TurboTax Free, click here.