Do you own foreign assets?


November 24th, 2012

Are you a Canadian resident (an individual, corporation, or trust) and you own foreign property with a worth of more than $100,000?  If so, you may be required to file the T1135 Foreign Income Verification Statement each year.

Don’t let the word property fool you…..it’s more than just land and buildings. ¬†Items that must be listed include:

  • 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
  • other income-earning foreign property.

Items that don’t need to be listed include:

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

It’s important that this form gets filed. ¬†The penalty for failing to do so is $2,500 per year. ¬†If you are an immigrant from outside Canada, and you retain your assets from countries outside Canada, be sure not to miss this.

Here is a list of FAQs from the CRA.

 

Filed under: Personal Tax by David Boese No Comments »

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