T1135 Foreign Property Reporting: The $100,000 Rule Explained
T1135 ਵਿਦੇਸ਼ੀ ਸੰਪਤੀ ਰਿਪੋਰਟਿੰਗ: $100,000 ਨਿਯਮ ਦੀ ਵਿਆਖਿਆ
Complete guide to T1135 foreign income verification requirements, penalties for non-compliance, and what counts as specified foreign property.
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Key Takeaways
- T1135 required for foreign property over $100,000 CAD
- Includes bank accounts, real estate, stocks, and more
- Penalties for non-filing can reach $2,500+ per year
- Due date matches your income tax return deadline
What is T1135?
Form T1135 is the Foreign Income Verification Statement. You must file it annually if you own specified foreign property with a total cost exceeding $100,000 CAD at any point during the year.
What Counts as Foreign Property?
- Bank accounts held outside Canada
- Shares in foreign corporations (not through Canadian brokers)
- Real estate outside Canada (not personal-use property)
- Foreign mutual funds and ETFs
- Interests in foreign trusts or partnerships
What Doesn't Count
Personal-use property (vacation homes), RRSP/TFSA holdings, and shares held through Canadian brokerages are excluded.
Penalties for Non-Compliance
Late Filing Penalties
$25/day (minimum $100, maximum $2,500) for late filing. Gross negligence penalties can reach $12,000 per year.
Filing Requirements
- File with your income tax return (April 30 for individuals)
- Simplified version available for property under $250,000
- Detailed reporting required for property over $250,000
Have Foreign Assets?
Tax Punjabi can help you comply with T1135 requirements and avoid penalties.