Fiscal and Financial Planning Guide 2024-2025

Investments > Foreign property (Form T1135)

If you owned foreign property with a total cost of more than $100,000 at some point in 2024, it would need to be described on Form T1135 of the federal tax return.

There are penalties for omissions or late declarations.

Among the main foreign property covered are:

  • Bank accounts;
  • Shares and bonds of foreign companies;
  • Real estate property;
  • Interest in non-resident trusts (offshore trust), including foreign mutual fund trusts.

Foreign securities (e.g. shares, bonds) held by a stock broker in Canada must be reported as foreign property on Form T1135.

Brokers are usually able to provide you with a summary report that help us to complete Form T1135 of your federal tax return.

However, the following foreign properties do not have to be reported on form T1135:

  • Foreign property held in an RRSP, RRIF;
  • foreign investments held in mutual funds registered in Canada even if the fund holds foreign investments;
  • foreign property used or held exclusively in an active business (form T1134 might be required);
  • personal use goods.

For example, a condominium held abroad (ex: Florida) does not need to be reported if it is used solely for personal purposes.  But, if it’s leased to third parties, it has to be reported on form T1135 reporting purposes.

If you have foreign property with a cost in excess of $100,000 in 2024, please respond to the related question on the income tax season questionnaire and send us the information on these investments (broker summary statement, description of the real estate, etc.).

Penalties

Late filing of Form 1135 after the April 30 deadline (June 15 in the case of self-employed workers) may result in a penalty of $10 per day (maximum $2,500). Higher penalties may apply for false information.

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