Reporting Requirements for Foreign Assets

Here’s a tip about T1 reporting requirements for foreign assets:

Canadian resident taxpayers who own specified foreign property with a total cost amount of C$100,000 at any time in the year are required to file form T1135.

SPECIFIED FOREIGN PROPERTY:

· Funds held outside Canada (For example, In a foreign bank account);

· Shares of foreign corporations:

· Property held outside Canada

· Foreign Mutual Funds;

· Shares of Canadian corporations held outside of Canada;

· Interests in foreign trusts;

· Precious metals, gold certificates and future contracts held outside of Canada are also considered foreign property that must be reported.

FOREIGN PROPERTY DOES NOT INCLUDE:

· Foreign property that is primarily personal use.

· Foreign property held by RRSP, RRIF, TFSA or Canadian mutual funds.

WHAT INFORMATION IS REQUIRED TO BE REPORTED?

· The country in which the property is located.

· The income or loss, and capital gain or loss realized from the property.

· The name of each bank account or investment must be listed.

· The maximum value of the property during the year.

PENALTIES FOR LATE FILING:

The penalty for late filing is $25 per day from a minimum $100 to a maximum $2500.

For more help on accurately reporting foreign assets, reach out to IDM Professional Corporation CPA.