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.
