According to CRA (Canada Revenue Agency), if you own foreign investment property costing more than $100,000 you likely need to file a Form T1135 Foreign Income Verification Statement (click here to download the CRA form).

CRA identifies who MUST report as:

  • Canadian resident individuals, corporations, and trusts that, at any time during the year, own foreign investment property (called specified foreign property) costing more than $100,000; and
  • partnerships that hold more than $100,000 in foreign investment property and whose non-resident members’ share of income or loss is less than 90% during the reporting period.

CRA goes on to clarify what property has to be reported, as follows:

Foreign investment property that must be reported includes:

  • amounts in foreign bank accounts;
  • shares in foreign companies;
  • interests in non-resident trusts;
  • bonds or debentures issued by foreign governments or foreign companies;
  • interests or units in offshore mutual funds;
  • real estate situated outside Canada; and
  • other income-earning foreign property.

However, foreign investment property does not include:

  • personal-use property, that is, any property used mainly for personal use and enjoyment, such as a vehicle, vacation property, jewellery, artwork, or any other such property; and
  • assets used only in an active business, such as a business inventory or the equipment and building used in a business.

The Foreign Income Verification Statement is due on the same date as the income tax return is due. 

Visit the CRA’s “Questions and Answers About T1135” to find out more.

Disclaimer:

This information is provided as an information service only and is not intended to substitute for competent professional advice. No action should be initiated without consulting a professional advisor.

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