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…’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 »

Leave a Reply

Your email address will not be published. Required fields are marked *