Do you own foreign property worth over $100,000?

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?

 

 

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