What are the specified properties that need to be reported in T1135?

Foreign investment property that must be reported in T1135 includes but not limited to

• Amounts in foreign bank accounts.
• Shares of foreign companies whether held through Canadian brokerage.
• Shares of foreign companies are held through foreign brokerage houses.
• Immovable properties held outside Canada.
• Life insurance policies, Bonds and debentures, mutual fund holdings, Derivatives issued by foreign companies or foreign governments.
• Real estate properties held outside Canada. (Remember to add renovation cost if you incur on the property.)
• Intangible properties that are exchangeable or convertible.
• Any other asset which generates income. (crypto currencies shall also be disclosed in the form)

What does not count specified property?

There are certain assets which are kept outside of the specified property list like

• Personal assets kept for enjoyment and personal use like vacation property, jewelry, artwork, vehicle or any other such property,
• Assets held out of Canada for active business-like equipment, building or inventory used in the business.
• An interest in the trust covered in exempt trust.
• Any interest or right to acquire in the above.

What if the assets are held jointly?

If the assets are held by more than one person jointly, then the share of the respective person is to be ascertained and if the adjusted cost base (ACB) exceeds $100K, the person is required to submit the form T1135.

Whether T1135 can be e-filed, or paper filed?

You have both the options to submit T1135. It can be filed electronically, or you can send in a paper form with your tax return.

Make sure even if you are filing your taxes through the accountant, the ultimate responsibility lies with the taxpayer, and he shall give proper and timely information to the accountant. Ask in specific whether the form is submitted along with the return or separately.

Note: The information is not intended to constitute professional advice and may not be appropriate for a specific individual or fact situation. It is written by the author solely in their personal capacity and cannot be attributed to the accounting firm with which they are affiliated. It is not intended to constitute professional advice, and neither the author nor the firm with which the author is associated shall accept any liability in respect of any reliance on the information contained herein. Readers should always consult with their professional advisors in respect of their particular situations.

-Raman Nagpal

B.Com, CA, CMA, DISA