Question 1

What is Form T1135?

Accepted Answer

The Foreign Income Verification Statement. Canadian residents file it with their tax return when the total cost of their property outside Canada was more than $100,000 at any time in the year.

Question 2

Do NRE and NRO accounts count?

Accepted Answer

Yes. Money in bank accounts outside Canada counts, including NRE, NRO and resident savings accounts and fixed deposits.

Question 3

Is it based on today’s value?

Accepted Answer

No. T1135 uses cost: what you paid, or for cash, what you deposited. That’s why the checker asks for cost, not market value.

Question 4

What doesn’t count?

Accepted Answer

Property you use personally, like a home your family lives in, property held inside an RRSP or TFSA, and property used in an active business.

Question 5

I just moved to Canada. Do I need to file?

Accepted Answer

Not for the year you first became a resident. From the next year, count what you owned at its value on the day you became a resident.

Question 6

What happens if I file late?

Accepted Answer

The penalty for filing late is $25 a day for up to 100 days, so up to $2,500, and more if the CRA decides it was deliberate.

Do I need to file T1135?

Let Duofolios watch the line for you.