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T1135 Foreign Property Checker

Interactive step-by-step guide to determine if you need to file a T1135 Foreign Income Verification Statement. Calculate thresholds, check exemptions, and understand penalties for Canadian tax residents with foreign property.

Step 1: Tax Residency

Are you a Canadian tax resident? (This generally means you live in Canada, have significant residential ties, or spend 183+ days in Canada during the tax year)

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About the T1135 Requirement

What is the T1135?

The T1135 Foreign Income Verification Statement is a form that Canadian tax residents must file if they own specified foreign property with a total cost exceeding CAD $100,000 at any time during the tax year. This form helps the CRA track foreign assets and ensure compliance with Canadian tax laws.

Who Must File?

  • Canadian tax residents (individuals, corporations, or trusts)
  • Owners of specified foreign property with a total cost basis exceeding $100,000 CAD
  • Cost basis is measured at ANY time during the tax year—even if you sold the property before year-end

Key Exemptions

  • Registered Accounts: Property held in RRSP, RRIF, TFSA, RESP, or RDSP is exempt
  • Canadian Funds: Canadian mutual funds or ETFs that invest internationally (e.g., XUS, VUN, VFV)
  • Personal Use Property: Vacation homes used exclusively for personal enjoyment
  • Active Business: Property used exclusively in an active business carried on by you
  • New Immigrants: Exempt in the first tax year as a Canadian resident only

Common Reportable Property

  • Foreign stocks, bonds, and ETFs (even if held in a Canadian brokerage)
  • Foreign bank accounts and cash holdings
  • Rental real estate outside Canada
  • Foreign defined-contribution pension plans with controlled investments
  • Cryptocurrency (reporting status remains unclear—seek professional advice)

Filing Types

Simplified Reporting (Part A)

If your total cost of specified foreign property is between $100,000 and $250,000, you can use the simplified reporting method. This requires only summary information by country.

Detailed Reporting (Part B or C)

If your total cost exceeds $250,000, you must provide detailed information about each foreign property, including descriptions, costs, and income generated.

Penalties for Non-Compliance

Late Filing (Under 24 Months)

$25 per day, up to a maximum of $2,500 per year

Late Filing (Over 24 Months)

$2,500 for the first 24 months PLUS 5% of the total cost of your foreign property

Important:

  • Penalties apply even if you owe no tax
  • Each person must file separately if required
  • "I didn't know" is not a valid defense
  • For significant delays, consider the Voluntary Disclosure Program (VDP)

Special Cases

  • Interlisted stocks (e.g., RBC, TD traded on both TSX and NYSE): NOT foreign property
  • Foreign currency accounts at Canadian banks: NOT foreign property
  • Government pensions (CPP-like): Usually NOT foreign property
  • Mixed-use vacation property: Generally exempt if primarily for personal use
  • Canadian stocks held at foreign brokerages: ALWAYS reportable

When in Doubt

Over-report rather than under-report. The risk of penalties for non-disclosure far outweighs the inconvenience of reporting something that may not strictly require it. If you're unsure about cryptocurrency, complex investment structures, or any other foreign holdings, consult with a tax professional experienced in international tax compliance.

Deadlines

The T1135 must be filed by the same deadline as your income tax return:

  • April 30: For most individuals
  • June 15: If you or your spouse are self-employed

Note: Even if you're entitled to the June 15 deadline, any taxes owing are still due April 30, and late payment interest applies after that date.