CRA Form T1135 Foreign Property Reporting Guide 2026 — Thresholds & Penalties | NationRules
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CRA Form T1135 Foreign Property Reporting

Complete compliance guide for Canadian tax residents owning offshore assets — the $100,000 CAD cost threshold, simplified vs detailed reporting methods, property classification, and avoiding strict CRA late penalties.

Who Must File Form T1135?

All Canadian resident individuals, corporations, trusts, and partnerships that owned specified foreign property with a total combined cost threshold exceeding $100,000 CAD at any time during the calendar year must file Form T1135 with CRA by the income tax filing deadline (April 30 for individuals, June 15 for self-employed).

Crucially, the $100,000 threshold is based on the maximum cost basis (purchase cost or FMV at residency entry date), NOT the current market value.

Simplified vs Detailed Reporting Thresholds

Total Foreign Property Cost BasisMethod RequiredInformation to Declare
$100,000 to $249,999 CADPart A (Simplified Method)Check off specific foreign property categories owned, declare top 3 country codes, and report total gross income & gain.
$250,000 CAD or morePart B (Detailed Method)Itemize each foreign bank account, stock, bond, real estate asset individually with maximum cost, year-end cost, income earned, and capital gain.

Specified Foreign Property Classification

❌ What COUNTS Towards $100k Limit
  • Foreign bank accounts (UK, US, India, China, etc.)
  • Foreign stocks held in Canadian/foreign brokerages
  • Foreign rental real estate (commercial or residential)
  • Debts/bonds owed by non-residents
  • Precious metals (gold/silver) held outside Canada
✅ What IS EXEMPT from T1135
  • Personal-use vacation homes (0 rental income)
  • Foreign property inside TFSA, RRSP, RIF, FHSA
  • Property used strictly in active business
  • Foreign pension plans (UK workplace, US 401k)

Frequently Asked Questions (T1135 Reporting)

No. Personal-use property (such as a foreign vacation home used exclusively by you or your family that generates zero rental income) is excluded from specified foreign property and does not count towards the $100,000 CAD threshold.

No. Foreign property held inside registered Canadian plans (TFSA, RRSP, RIF, RESP, FHSA) is exempt from T1135 reporting.

The threshold is based on the maximum total *cost basis* of all specified foreign property owned at any point during the year, converted to CAD on the transaction date. It is not based on market value.

You can submit past-due T1135 forms through the CRA Voluntary Disclosures Program (VDP) to request a waiver of late penalties ($2,500 per year) before CRA contacts you.

Yes. US equities (Apple, Microsoft, etc.) held in a Canadian non-registered margin account are specified foreign property.

CRA grants a 1-year exemption: newcomers to Canada are NOT required to file Form T1135 for the tax year in which they first become a Canadian tax resident.

Form T1135 can be e-filed directly alongside your T1 return using NETFILE certified tax software (such as Wealthsimple Tax, TurboTax, or H&R Block).
Official Government References & Sources

• CRA Form T1135 Statement of Foreign Income Verification: canada.ca/form-t1135-guide
• CRA Voluntary Disclosures Program (VDP for missing T1135s): canada.ca/vdp-overview

T1135 Quick Facts
Threshold>$100,000 CAD cost
Late Penalty$25/day (Max $2,500/yr)
Simplified Method$100k–$250k
Detailed Method>$250k
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