As a Canadian resident, you have to report the income you’ve earned from both Canadian and foreign sources. This includes reporting the specified foreign property you held in 2016 that’s worth over $100,000 CAD.
Note: If this applies to you, you’ll need to complete the T1135: Foreign Income Verification Statement page in H&R Block’s Tax Software.
What’s considered specified foreign property?
According to the Canada Revenue Agency (CRA), specified foreign property includes:
- Bank accounts held abroad (interest)
- Debt securities and shares of foreign corporations (mutual funds, shares, bonds, or debentures) and debt owed by a non-resident, including governments
- Real estate
- An interest in a partnership that holds a specified foreign property unless the partnership is required to file a T1135
- A life insurance policy issued by a foreign issuer
- Other tangible and intangible (like patents or copyrights) properties located outside Canada
Specified foreign property does not include:
- Property used or held exclusively in the course of carrying on an active business
- Registered pension fund investments
- Foreign investments held in Canadian registered mutual funds
- Personal-use properties (cottages, paintings, jewelry, automobiles)
- Shares of a foreign affiliate
Where can I learn more?
- Foreign Income Verification Statement (CRA website)