When it comes to taxes, there are many forms and regulations to be aware of, and one that often causes confusion is the Foreign Property Reporting form, also known as Form T1135. This form requires Canadian taxpayers to report certain foreign property holdings, but not everyone is required to file it. In this blog post, we’ll explore whether or not you have to file Form T1135 and what you need to know.

First, let’s define what constitutes foreign property. This can include a wide range of assets, such as bank accounts held outside of Canada, foreign real estate, stocks and bonds in foreign companies, and even cryptocurrency. It’s important to note that the value of the foreign property must exceed $100,000 CAD at any point during the year to trigger the reporting requirement.

So, do you have to file Form T1135? The answer is, it depends. If you are a Canadian resident, and at any point during the year had foreign property with a total cost of more than $100,000 CAD, you are required to file the form. However, if you are a non-resident of Canada, you are not required to file Form T1135, regardless of the value of your foreign property.

It’s also worth noting that there are certain exceptions to the reporting requirement. For example, if you held the foreign property through a Canadian mutual fund, you may not have to report it. Additionally, certain foreign property holdings may be exempt from reporting, such as property used in an active business or property held for personal use.

Filing Form T1135 can be a complex process, and it’s important to ensure that it’s done correctly to avoid potential penalties. Working with an experienced accounting firm, like JTT Accounting, can help ensure that your foreign property holdings are accurately reported on your tax return.

In conclusion, if you are a Canadian resident and have foreign property holdings valued at more than $100,000 CAD at any point during the year, you are required to file Form T1135. However, there are exceptions to this rule and working with a knowledgeable accounting firm can help ensure that you are in compliance with all necessary regulations. Contact JTT Accounting today to learn more about how we can assist with your tax reporting needs.