Foreign property over CAD 100,000: the T1135 form

Short answer: Canadian resident individuals, corporations and certain trusts that own specified foreign property costing more than CAD 100,000 at any time in the year file Form T1135, the Foreign Income Verification Statement. It is due on the same date as the income tax return. Filing late is subject to a penalty of CAD 25 a day for up to 100 days, between CAD 100 and CAD 2,500.

Who files

• A Canadian resident individual, corporation or certain trusts.
• Who owned specified foreign property at any time in the year.
• With a total cost of more than CAD 100,000. The test is the cost of the property, as the CRA describes it, and the CRA’s page lists what counts as specified foreign property.

Two ways to report

When it is due, and what late costs

Form T1135 is due on the same date as the income tax return. The failure-to-file penalty is CAD 25 a day for up to 100 days, with a minimum of CAD 100 and a maximum of CAD 2,500. The CRA’s table of penalties also lists penalties for failing to furnish foreign-based information and for a false statement or omission. If foreign property income was not reported on the return and the T1135 was not filed on time, or has a false statement or omission, the CRA has an extra three years in which it can reassess. The CRA’s page sets out the exact test, so read it rather than relying on this summary.

What this guide does not cover

We do not prepare the T1135 or advise on foreign property reporting. What counts as specified foreign property, how to work out cost, and whether someone who has recently become a Canadian resident is treated differently are questions for the CRA’s pages or a tax professional. If a return was missed, the Voluntary Disclosures Program guide explains the CRA’s relief for correcting it before the CRA makes contact.

The Voluntary Disclosures Program →

Filing your T1 late →

Amending a T1 or T2 return →