Who needs to file a T1135?

The CRA requires Form T1135 from Canadian resident individuals, corporations and certain trusts that, at any time during the year, own specified foreign property costing more than $100,000, and from certain partnerships that hold more than $100,000 of it. Only residents of Canada file: a non-resident with Canadian employment income does not. The form is required even when the person is not otherwise required to file an income tax return.

Is the T1135 $100,000 threshold based on market value?

No. The CRA states that the threshold is based on cost amount, which is defined in the Income Tax Act and is generally the adjusted cost base, not fair market value. A holding that cost less than $100,000 and has since grown past that figure does not, on its own, trigger the form. Two exceptions use market value as the cost: property received as a gift or inheritance, and property a newcomer already owned on the day they became resident.

Do I have to file a T1135 for U.S. stocks held at a Canadian broker?

Yes, if the total cost amount of all specified foreign property is over $100,000 at any time in the year. The CRA says shares of non-resident corporations are specified foreign property and are reported regardless of whether they are held through a broker, Canadian or foreign. When the account is with a Canadian registered securities dealer, the holdings can be reported as country-by-country totals in Category 7 instead of one line per security.

Do I need to report foreign stocks in my TFSA or RRSP on a T1135?

No. The CRA's answer is that specified foreign property held in an RRSP or a TFSA is excluded from Form T1135 reporting requirements. The CRA's question refers to registered plans and gives those two as its examples; it does not list every registered plan by name. Holdings in those accounts are left out of the $100,000 total and off the form.

Do Canadian ETFs and mutual funds that hold U.S. stocks count for T1135?

The CRA says an investor does not report an investment in a Canadian mutual fund trust, or a Canadian mutual fund corporation, because it is not specified foreign property, even though the fund itself may hold foreign shares. A fund counts under this answer only if it meets the Income Tax Act definition, which is stated in the fund's own documents. An investment in a non-resident fund is specified foreign property.

When is the T1135 due?

Form T1135 is due on the same date as the income tax return. For most individuals that is on or before April 30, and for self-employed individuals and their spouse or common-law partner it is on or before June 15. For the 2026 tax year those dates are April 30, 2027 and June 15, 2027. Corporations file no later than six months after the end of their fiscal period.

What is the penalty for filing a T1135 late?

The CRA's penalty for failing to file is $25 per day for up to 100 days, with a minimum of $100 and a maximum of $2,500. Where the failure is done knowingly or through gross negligence, the penalty is $500 per month for up to 24 months, to a maximum of $12,000, and after 24 months it becomes 5% of the cost of the foreign property, less penalties already levied.

Do newcomers have to file a T1135 in their first year in Canada?

No. The CRA states that an individual does not have to file Form T1135 for the tax year in which he or she first became resident in Canada. For later years, the cost amount of foreign property the person already owned is its fair market value at the time they first became resident, and that figure is used to test the $100,000 threshold.

Is a vacation home outside Canada reported on a T1135?

Not when it is personal-use property. The CRA excludes property used primarily, meaning more than 50%, for personal use or enjoyment. In its own example, a Florida condominium with a cost amount of $120,000 used only as a vacation property is not reported, while the same condominium rented for eight months of the year with a reasonable expectation of profit is specified foreign property.

What is the difference between T1135 Part A and Part B?

Part A is the simplified reporting method for people whose specified foreign property had a total cost of more than $100,000 but less than $250,000 throughout the year: a tick box for each type of property, the top three countries, income and gains. Part B is the detailed method, required when total cost was $250,000 or more at any time in the year. A person under that level may choose either part, but not both.

Does foreign income have to be reported if the property cost under $100,000?

Yes. The CRA says Canadian resident taxpayers must report and include in their income all the income they earn from foreign property, regardless of the cost amount. The $100,000 threshold only decides whether Form T1135 is also required. Being under it removes the reporting form, not the tax on foreign interest, dividends, rent or capital gains.

Can a T1135 be filed online?

Yes. Individuals can file Form T1135 electronically using EFILE or NETFILE for the 2017 and later tax years, and the CRA issues a confirmation number to keep. A paper form is either attached to a paper-filed return or sent separately to the Winnipeg Tax Centre by the filing due date. An amended form needs the amended-return box ticked and all the required information, not just the changes.

T1135 Foreign Property: Who Files, $100,000 Rule, Penalties

T1135 at a glance: threshold, methods, deadline and penalty

How to read this table: every dollar threshold is a cost amount, not a market value. The same form and threshold apply to individuals, corporations and trusts; this page covers individuals.

Rule	What the CRA states
Who files	Canadian resident individuals, corporations and certain trusts, plus certain partnerships
Trigger	Specified foreign property with a total cost amount of more than $100,000 at any time during the year
What the threshold measures	Cost amount (generally the adjusted cost base), not fair market value
Simplified method (Part A)	Total cost more than $100,000 but less than $250,000 throughout the year
Detailed method (Part B)	Total cost of $250,000 or more at any time during the year
Deadline	Same date as the income tax return: April 30 for most individuals, June 15 for the self-employed and their spouse or common-law partner
Late-filing penalty	$25 per day for up to 100 days (minimum $100, maximum $2,500)
Year of arrival	No T1135 for the tax year an individual first became resident in Canada

Specified foreign property: what the CRA lists as reportable

How to read this table: each row counts toward the $100,000 total at its cost amount. The test for a share is where the corporation is resident, or where the share is held, not the currency it trades in.

Type of property (CRA wording)	Example or CRA clarification
Funds or intangible property situated, deposited or held outside Canada	A bank account in another country; patents and copyrights
Tangible property situated outside Canada	A rental property abroad; vacant land, even though it produces no income
A share of the capital stock of a non-resident corporation	Shares of a foreign company, whether held through a Canadian or a foreign broker
Shares of corporations resident in Canada held outside Canada	Canadian company shares on deposit with a foreign agent
An interest in a non-resident trust acquired for consideration	Units of a non-resident mutual fund trust (the fund is reported, not what it holds)
A debt owed by a non-resident	Government and corporate bonds, debentures, mortgages and notes receivable
An interest in a foreign insurance policy	A life insurance policy issued by a foreign issuer
Precious metals, gold certificates and futures contracts held outside Canada	Bullion stored in a vault abroad
Property convertible into, or giving a right to acquire, specified foreign property	A right to acquire shares of a non-resident corporation
An interest in a partnership that holds specified foreign property	Only when the partnership itself is not required to file Form T1135

Not reported on Form T1135, as the CRA states it

How to read this table: these holdings are left out of the $100,000 total as well as off the form. Whether a property is personal-use, or used in an active business, is a question of fact the CRA decides case by case.

Not specified foreign property	CRA detail
Personal-use property	Property used primarily (more than 50%) for personal use or enjoyment, such as a vacation home, plus listed personal property such as works of art, jewelry, rare books, stamps and coins
Property held in an RRSP or a TFSA	The CRA states that specified foreign property held in an RRSP or a TFSA is excluded from Form T1135 reporting
An investment in a Canadian mutual fund trust or Canadian mutual fund corporation	Not specified foreign property to the investor, even when the fund holds foreign property
Property used or held exclusively in carrying on an active business	For example a warehouse abroad used only to store the business's inventory
A share or debt of a foreign affiliate	Foreign affiliates are reported on a different form, T1134
An interest in an exempt trust	A trust described in paragraph (a) or (b) of the exempt trust definition in subsection 233.2(1) of the Income Tax Act
Shares of a Canadian resident corporation priced in a foreign currency	Currency does not decide the question; they count only if situated, deposited or held outside Canada

Common investment holdings and Form T1135, per the CRA's questions and answers

How to read this table: the CRA's test is the residence of the corporation or fund, not the exchange it trades on or the currency. Its fund answer applies to a Canadian mutual fund trust or corporation as defined in the Income Tax Act; a fund's own documents state whether it is one.

Holding	Specified foreign property?	CRA basis
Shares of a non-resident corporation (for example a U.S. company) in a non-registered account at a Canadian broker	Yes	Shares of non-resident corporations are reported regardless of whether they are held through a broker
Units or shares of a non-resident mutual fund (trust or corporation)	Yes	The investment in the fund is reported, not the fund's underlying property
Units of a Canadian mutual fund trust, or shares of a Canadian mutual fund corporation, that holds foreign stocks	No	The investment is not specified foreign property to the investor
Shares of a Canadian resident corporation bought in U.S. dollars and held in Canada	No	The currency of a property does not determine whether it is specified foreign property
Cash in a bank account outside Canada	Yes	Funds situated, deposited or held outside Canada
Any of the above inside an RRSP or a TFSA	Excluded from reporting	Specified foreign property held in an RRSP or a TFSA is excluded from Form T1135 reporting

T1135 Part A and Part B compared

How to read this table: both thresholds use cost amount, not market value. Someone eligible for Part A may complete Part B instead, but only one part is filled in.

Method	Part of the form	Applies when	What is reported
Simplified reporting method	Part A	Total cost of more than $100,000 but less than $250,000 throughout the year	A tick box for each type of property held, the top three countries by highest month-end cost amount, gross income, and gain or loss on disposition
Detailed reporting method	Part B	Total cost of $250,000 or more at any time during the year (optional below that level)	Details of each property in its category; property in an account with a Canadian registered securities dealer or Canadian trust company can be totalled country by country in Category 7

Form T1135 filing deadlines by type of filer

How to read this table: the T1135 date follows the return date for the same filer. Different dates can apply for a person who died during the year.

Filer	Form T1135 is due
Most individuals	On or before April 30
Self-employed individuals and their spouse or common-law partner	On or before June 15
Corporations	No later than six months after the end of the fiscal period
Inter vivos trusts	December 31 plus 90 days
Partnerships whose partners are all individuals	No later than March 31 after the calendar year in which the fiscal period ended

Form T1135 penalties set as dollar amounts

How to read this table: the two monthly penalties apply only where the failure was done knowingly or in circumstances amounting to gross negligence, and each is reduced by penalties already levied.

Situation	Income Tax Act	Penalty	Charged	Minimum	Maximum
Failing to file on time	162(7)	$25	per day, up to 100 days	$100	$2,500
Failing to file knowingly or through gross negligence	162(10)(a)	$500	per month, up to 24 months	—	$12,000
Not complying with a CRA demand to file, knowingly or through gross negligence	162(10)(b)	$1,000	per month, up to 24 months	—	$24,000

Form T1135 penalties set as a percentage of cost

How to read this table: for a false statement or omission, the penalty is the greater of $24,000 and the percentage shown.

Situation	Income Tax Act	Rate	Applied to
Still not filed after 24 months (knowingly or through gross negligence)	162(10.1)	5%	The cost of the foreign property, less penalties already levied
False statement or omission, knowingly or through gross negligence	163(2.4)	5%	The cost of the foreign property the statement or omission was about, or $24,000 if that is greater

CRA examples: is Form T1135 required?

How to read this table: the dollar figures are the CRA's own. Each answer assumes the facts given; the CRA decides real cases on their own facts.

Situation	CRA answer
Shares in a non-resident corporation with a cost amount of $75,000 and a U.S. bank account holding $35,000	Must file: the total cost amount is $110,000, over the $100,000 threshold, even though neither property is over it alone
Over $100,000 during the year, but under it (or sold) by year end	Must file and report all specified foreign property held during the year
Florida condominium with a cost amount of $120,000, used only as a vacation property	Not reported: personal-use property
Same condominium rented eight months of the year with a reasonable expectation of profit	Reported: not held primarily for personal use
Same condominium rented part of the year only to recover some expenses, with no reasonable expectation of profit	Not reported: the CRA treats it as personal-use property
Four-unit building abroad, one unit personal and three rented for profit	The entire cost amount is reported: 75% of the property is rented for profit
Foreign property bought for $500,000 with a $50,000 down payment and a mortgage	Must file: the cost amount is $500,000, not the down payment
Foreign property received as a gift or inheritance	Cost amount is the fair market value when it was received
Property already owned on becoming a resident of Canada	Cost amount is the fair market value on the day the person first became resident

Rule or table	In effect from	Verified
Form T1135, Foreign Income Verification Statement — who files, the $100,000 cost-amount threshold, specified foreign property, simplified and detailed reporting, deadline and penalties	January 1, 2015	October 8, 2026
Canadian personal income tax deadlines — 2025 tax year (filed in 2026), 2026 instalments, rules for the 2026 tax year, penalties and special cases	January 1, 2026 to June 15, 2027	September 30, 2026

T1135: who must file the Foreign Income Verification Statement

What is Form T1135 and who has to file it?

Who has to file Form T1135?

What is the $100,000 cost-amount threshold?

What counts as specified foreign property?

What does not count as specified foreign property?

Do U.S. stocks and Canadian funds count toward the T1135 threshold?

Simplified or detailed: which T1135 reporting method applies?

When is the T1135 form due, and how is it filed?

What are the penalties for not filing a T1135?

What if a T1135 was missed or filed with a mistake?

How does T1135 work for newcomers to Canada?

How the CRA applies the rules: its own examples

Common mistakes with Form T1135

Frequently asked questions

Rules, rates and sources