What is Form T1135?
Canadian form for reporting foreign property with a total cost over CAD $100,000, the Canadian equivalent of FBAR.
Definition
Form T1135, Foreign Income Verification Statement, must be filed by Canadian tax residents who at any time during the year held specified foreign property with a total cost amount exceeding CAD $100,000. This includes foreign bank accounts, foreign stocks held outside Canada, foreign rental properties, and foreign trusts. It is conceptually similar to the US FBAR but uses cost basis rather than fair market value and has different thresholds.
Who Needs to Know This?
Canadian tax residents holding foreign property costing more than CAD $100,000 in total, including dual citizens who may also need to file FBAR with the US.
Key Deadline
Due with T1 General return (April 30 or June 15 for self-employed)
Potential Penalties
$25 per day late (minimum $100, maximum $2,500); gross negligence penalty of $500 per month (up to $12,000)
Related Forms
Common Mistakes to Avoid
- 1Confusing T1135 thresholds (cost basis) with FBAR thresholds (fair market value)
- 2Not realizing mutual funds held outside Canada must be reported
- 3Dual citizens not filing both T1135 and FBAR
- 4Using market value instead of cost for the $100,000 threshold
Related Terms
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