Do you own foreign property worth over $100,000?

As a Canadian resident, you have to report the income you’ve earned from both Canadian and foreign sources. This includes reporting any specified foreign property you held in 2018 that’s worth over $100,000 CAD on the T1135: Foreign Income Verification Statement form.

What’s considered specified foreign property?

According to the Canada Revenue Agency (CRA), specified foreign property includes:

  • Bank accounts held abroad (interest income)
  • Debt securities and shares of foreign corporations (mutual funds, shares, bonds, or debentures) and debt owed by a non-resident, including governments
  • Real estate
  • An interest in a partnership that holds a specified foreign property unless the partnership is required to file a T1135
  • A life insurance policy issued by a foreign issuer
  • Other tangible and intangible (like patents or copyrights) properties located outside Canada

Specified foreign property does not include:

  • Property used or held exclusively in the course of carrying on an active business
  • Registered pension fund investments
  • Foreign investments held in Canadian registered mutual funds
  • Personal-use properties (cottages, paintings, jewelry, automobiles)
  • Shares of a foreign affiliate

Where do I report this?

Follow these steps in H&R Block’s 2018 tax software to complete the T1135:

  1. On the PREPARE tab, click the REQUIRED icon.

  2. Navigate to the Special situations page. You’ll find yourself here: 

    DIY18_Special_situations_EN.png

  3. Answer Yes to the question, At any time in 2018, did you own or hold specified foreign property with a total cost of more than $100,000 CAD?.

  4. When you arrive at the Foreign income verification statement page, enter your information into the tax software.
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