Cost amount/Maximum cost amount
Cost amount is defined in subsection 248(1) of the Act and generally would be the acquisition cost of the property. If you immigrate to Canada, the cost amount is the fair market value of the property at the time of immigration. Similarly, if you received specified foreign property as a gift, or inheritance, the cost amount is its fair market value at the time of the gift or inheritance.
The maximum cost amount during the year can be based on the maximum month-end cost amount during the year.
The maximum amounts reported during the year must not be less than the amounts reported at year-end.
Foreign currency conversion
The amounts to be reported on Form T1135 should be determined in the foreign currency then translated into Canadian dollars. Generally, when converting amounts from a foreign currency into Canadian dollars, use the exchange rate in effect at the time of the transaction (i.e. the time the income was received or the property was purchased). If you received income throughout the year, an average rate for the year is acceptable.
The following summarizes how other amounts of the form should be translated:
- Maximum funds held during the year - the average exchange rate for the year.
- Funds held at year end - the exchange rate at the end of the year.
- Maximum fair market value during the year - the average exchange rate for the year.
- Fair market value at year end - the exchange rate at the end of the year.
Tables
Specified foreign property has been divided into seven (7) categories and
should be reported in one of the following tables:
1. Funds held outside Canada
Funds held outside Canada include money on deposit in foreign bank
accounts, money held with a foreign depository for safekeeping and money
held by any other foreign institution at any time during the year. Prepaid debit
or credit cards and negotiable instruments, such as cheques and drafts, are
also included in this category. Marketable securities should be reported in
category 3.
2. Shares of non-resident corporations (other than foreign
affiliates)
Report all shares of non-resident corporations whether or not they are
physically held in Canada.
Do not report shares of a foreign affiliate corporation. Generally, a foreign
affiliate is a non-resident corporation (or certain non-resident trusts) of which
you hold at least 1% of the shares individually, and, either alone or with
related persons, hold 10% or more of the shares. If you have a foreign affiliate,
you may have to file Form T1134, Information Return Relating to Controlled
and Not Controlled Foreign Affiliates.
3. Indebtedness owed by non-residents
Report all amounts owed to you by a non-resident person (other than a
foreign affiliate corporation) whether the indebtedness is held inside or
outside Canada. Include all promissory notes, bills, bonds, commercial paper,
debentures, loans, mortgages, and other indebtedness owed to you by a
non-resident person. Marketable securities, such as guaranteed investment
certificates, government treasury bills and term deposits issued by a
non-resident, should be reported under this category.
4. Interests in non-resident trusts
Report all interests in non-resident trusts acquired for consideration, other than
a non-resident trust that is a foreign affiliate for the purposes of section 233.4
of the Act.
If you contributed to, or received a distribution or loan from, a non-resident
trust you may be required to file Form T1141, Information Return in Respect
of Contributions to Non-Resident Trusts, Arrangements or Entities or
Form T1142, Information Return in Respect of Distributions from and
Indebtedness to a Non-Resident Trust.
5. Real property outside Canada
Report all real property located outside of Canada other than real property
used in an active business or used primarily for personal use (such as a
vacation property used primarily as a personal residence). Rental property
outside Canada should be included in this category.
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6. Other property outside Canada
This category should include any property that does not correspond to any of
the other categories.
Other property includes:
- shares of corporations resident in Canada held by you or for you outside Canada;
- an interest in a partnership that holds specified foreign property where the partnership is not required to file the Form T1135;
- foreign insurance policies;
- precious metals or bullion (e.g., gold and silver) situated outside Canada;
- commodity or future contracts, options or derivatives that constitute a right to, a right to acquire, or an interest in, specified foreign property; and
- any other rights to, rights to acquire, or interests in, specified foreign property
7. Property held in an account with a Canadian registered securities dealer or a Canadian trust company
A taxpayer who held specified foreign property with a Canadian registered
securities dealer (as defined in subsection 248(1) of the Act) or with a
Canadian trust company (as determined under paragraph (b) of the definition
of restricted financial institution in subsection 248(1) of the Act) is permitted to
report the aggregate amount of all such property in this category.
The table for this category should be completed as follows:
- all of the property held with a particular securities dealer or trust company should be aggregated on a country-by-country basis;
- it is also acceptable to provide aggregate totals for each particular account on a country-by-country basis;
- refer to the "country code" instructions above to determine the appropriate country for each property; and
- the maximum fair market value during the year may be based on the maximum month-end fair market value.
Certification
This area should be completed and signed by:
- the person filing this form in the case of an individual;
- an authorized officer in the case of a corporation;
- the trustee, executor or administrator in the case of a trust; or
- an authorized partner in the case of a partnership.
Due dates for filing this form
Form T1135 must be filed on or before the due date of your income tax return
or, in the case of a partnership, the due date of the partnership information
return, even if the income tax return (or partnership information return) is not
required to be filed.
Filing by internet (EFILE or NETFILE)
Individuals, corporations, and partnerships can file Form T1135 electronically.
- Individuals can file Form T1135 electronically (EFILE or NETFILE) for the 2017 and subsequent taxation years.
- Corporations can EFILE Form T1135 electronically for the 2014 and subsequent taxation years.
- Partnerships can file Form T1135 electronically (EFILE or NETFILE) for the 2017 and subsequent taxation years.
- Trusts can EFILE Form T1135 electronically for the 2021 and subsequent taxation years.
- EFILE - Your EFILE service provider, including a discounter, can complete and file your Form T1135 for you if prepared with tax preparation software certified by the CRA for the internet filing of Form T1135. For more information, go to EFILE for individuals and EFILE for corporations.
- NETFILE - You can file your Form T1135 by Internet if prepared with tax preparation software certified by the CRA for the internet filing of Form T1135. Most individuals are eligible to NETFILE. For more information or to file your Form T1135, go to NETFILE at canada.ca/netfile.
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