Key takeaways
- Threshold: more than $100,000 total cost of specified foreign property at any time in the year
- Use cost, not market value; for property you owned when you arrived, cost is generally its value on your residency date
- Not required for the year you first became a resident
- $100,000 to $250,000: simplified reporting; over $250,000: detailed reporting
- Late filing penalty: $25 a day, at least $100 and up to $2,500, and more for gross negligence
Who must file Form T1135
Canadian residents must file Form T1135, Foreign Income Verification Statement, if the total cost amount of their specified foreign property was more than $100,000 at any time in the year. It is due on the same date as your tax return. If you pass the threshold at any point, you report all specified foreign property you held that year, even if you sold some before December 31.
The CRA’s key rule for newcomers: “An individual does not have to file Form T1135 for the tax year in which he or she first became resident in Canada.” From your second tax year, the normal test applies.
What counts, and what does not
| Counts (specified foreign property) | Does not count |
|---|---|
| Bank accounts and deposits outside Canada | Property you use mainly for personal use, such as a home abroad you live in or a car |
| Shares of foreign companies, even held in a Canadian brokerage | Property used only in an active business |
| Foreign bonds, funds and insurance policies | Investments inside an RRSP, TFSA or similar registered plan |
| Foreign rental or investment real estate | Canadian mutual funds (even if they own foreign shares) |
| Money owed to you by non-residents | Shares of a foreign affiliate (separate rules) |
Cost, not market value
T1135 uses the cost amount, which is generally your adjusted cost base. It is not today’s value. For property received as a gift or inheritance, the cost is its fair market value when you received it.
For newcomers, property you already owned when you became a resident is generally treated as bought at its fair market value on your residency date. Write down the value of each foreign account and investment on that day, in Canadian dollars. It becomes your cost for T1135 and for future capital gains.
How the checker counts
Enter the highest total cost of each type of property during the year, in Canadian dollars. The checker adds them up and compares the total with $100,000. If the tax year is your first year as a resident, it shows that no form is needed. If your total is over $250,000, it reminds you to use the detailed method.
Example: you became a resident in 2025 and hold $60,000 in a bank account abroad and $50,000 of foreign shares. For 2025: no T1135 (first year). For 2026: total cost $110,000, so you file T1135 with your 2026 return by April 30, 2027, using the simplified method.
Penalties for late or missing T1135
Under the Income Tax Act, a late information return costs the greater of $100 or $25 a day for up to 100 days, so up to $2,500. Larger penalties apply if you knowingly or through gross negligence fail to file. File on time even if you owe no tax on the property. Foreign income from these assets is reported on your return, and you may claim a foreign tax credit for tax paid abroad.
Bringing the money to Canada instead? See how to bring money to Canada and the border declaration rules.