Who is required to file?
Individuals, Corporations, Trusts and Partnerships must file a T1135 if they have had total Specified Foreign Property with a cost of more than $100,000 Canadian at any time during the year.
What is Specified Foreign Property?
The rules regarding what is or is not specified foreign property are lengthy, they include:
• Funds held outside Canada
• Shares of non-resident corporations (other than foreign affiliates)
• Indebtedness owed by non-residents
• Interests in non-resident trusts
• Real property outside of Canada (other than personal use and real estate used in an active business)
• Other property outside Canada
What do I have to report?
For each item you are required to identify the
• Maximum funds held or maximum cost during the year
• Funds held or cost amount at the year end
• Income (loss) during the year
• Gain (loss) on disposition during the year
Note: Where the taxpayer has received a T3 or T5 from a Canadian issuer in respect of a specified foreign property for a taxation year, that property must be disclosed, but is excluded from detailed reporting for that taxation year.
When do you have to file?
T1135 Statements must be filed at the same due date as the applicable income tax return. Penalties for late or non-filing are significant.
Contact us for further information on filing requirements