Canadian residents, certain types of trusts or partnerships, and even corporations all need to complete form T1135 if, at any time during 2018, they held specified foreign property that cost more than $100,000. Even if you sold some or all of your specified foreign property before the end of the year, you’ll still need to complete the T1135, if you met the $100,000 threshold at any time during 2018.
What is specified foreign property?
Specified foreign property can include:
- Funds or intangible property (like a patent or copyright) that are held outside of Canada
- Shares of capital stock issued by a non-resident corporation
- An interest in a foreign insurance policy and
- Precious metals, gold certificates, and futures contracts that are held outside of Canada
For the purposes of the T1135, specified foreign property doesn’t include:
- Foreign investments held in a Canadian mutual fund or
- Property you used or held exclusively while carrying on your active business
- Personal-use property such as jewelry, works of art, vacation property, etc.
Note: These lists aren’t complete. For more details on the types of foreign property you need to report on your T1135, check out the Canada Revenue Agency's website.
Where do I enter this?
Follow these steps in H&R Block’s 2018 tax software:
- On the PREPARE tab, click the REQUIRED icon. You’ll find yourself here:
- On the SPECIAL SITUATIONS page, 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?, then click Continue.
- When you arrive at the page for your T1135: Foreign income verification statement, enter your information into the tax software.