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.
Filed under: Personal Tax by David Boese No Comments »