When do I need to file T1135 in Canada?

You must file T1135 if your total cost of specified foreign property exceeds $100,000 CAD at any time during the year. This includes foreign bank accounts, investment accounts, and rental property.

Do US stocks in a Canadian brokerage count for T1135?

Generally, no. US stocks or ETFs held in a Canadian brokerage account are excluded from T1135 reporting because they are held by a Canadian registered securities dealer.

What is the penalty for not filing T1135?

Penalties start at $25/day (minimum $100) up to $2,500 for missing the deadline. Greater penalties apply for knowingly not filing, up to $12,000 or 5% of the cost of the foreign property.

Do I need to file T1135 for US real estate?

Yes, if the cost of the US property (plus all other specified foreign property) exceeds $100,000 CAD. Rental income must also be reported on your Canadian tax return. You may claim a foreign tax credit for US taxes paid. A US vacation home counts as specified foreign property even if it generates no income.

What foreign property is excluded from T1135?

Key exclusions: (1) Foreign assets held in registered accounts (RRSP, TFSA, RESP), (2) US stocks/ETFs held through a Canadian brokerage, (3) Personal-use property like a vacation home you use personally (though this is a grey area if you also rent it), (4) Business-use foreign assets that are active business property. The most common situation — owning VFV or US ETFs at Wealthsimple or Questrade — does NOT require T1135.

T1135 Foreign Property Reporting Canada 2026: $100K Threshold & Penalties

What Is Form T1135?

Foreign Income Verification Statement

Purpose	Details
Report	Foreign property over $100K
Who files	Canadian residents
Threshold	Total cost exceeds $100,000
Due date	With tax return

Why It Exists

Goal	Details
CRA tracking	Foreign assets
Income reporting	Ensure foreign income reported
Tax compliance	Prevent offshore hiding

The $100,000 Threshold

How It Works

Rule	Details
Total cost	All specified foreign property
Anytime during year	Not just year-end
CAD equivalent	Convert foreign currency
Cost NOT value	Original cost, not market value

Example

Foreign Assets	Cost (CAD)
US bank account	$50,000
UK investment account	$40,000
Australian shares	$15,000
Total	$105,000

Must file T1135.

What Counts as Specified Foreign Property

Included

Property Type	Example
Foreign bank accounts	US savings account
Foreign investment accounts	Brokerage outside Canada
Foreign stocks/bonds	Held directly abroad
Foreign rental property	Condo in Florida
Foreign business interests	Over 10% ownership
Foreign mutual funds	Held abroad
Foreign trusts	Beneficiary interest

NOT Included (Excluded)

Property Type	Why Excluded
US stocks in Canadian RRSP/TFSA	Registered plan
Stocks held in Canadian brokerage	Held by Canadian dealer
Personal-use property	Vacation home (not rental)
RRSP, TFSA, RESP	Registered accounts
Business inventory	Excluded
Canadian mutual funds (even if hold foreign)	Canadian fund

Common Confusion

US Stocks in Canadian Account

Situation	T1135 Required?
US stocks at Questrade	No
US ETFs at TD Direct	No
US account at Charles Schwab	Yes (if over $100K)
Wealthsimple TFSA holding US	No

Real Estate

Property	T1135 Required?
Rental property abroad	Yes
Vacation home (personal)	No
Mixed use	Rental portion counts

Two Reporting Methods

Simplified vs. Detailed

Method	When to Use
Simplified	$100,000 - $250,000 cost
Detailed	Over $250,000 cost

Simplified Method (Part A)

Report	Details
Category	Type of property
Top 3 countries	By value
Total income	From foreign property
Total cost	By category

Detailed Method (Part B)

Report	Details
Each property	Listed individually
Country	For each
Maximum cost	During year
Year-end value	December 31
Income	From each

How to Complete T1135

Step 1: Determine If Required

Question	Answer
Foreign property cost >$100K	At any time?
Held by Canadian dealer?	Then excluded
Personal use?	Usually excluded

Step 2: Calculate Cost

For Each Property	Record
Original cost	In CAD
Date acquired	When purchased
Maximum during year	Highest cost anytime
Year-end cost	December 31

Step 3: Complete Form

Section	What to Report
Categories	Funds, shares, real estate, etc.
Income	Interest, dividends, rent, gains
Countries	Where property located

Categories of Property

Category Breakdown

Category	Examples
Funds outside Canada	Bank accounts, foreign cash
Shares (non-Canadian)	Direct foreign shareholdings
Indebtedness	Loans to non-residents
Real property	Foreign land/buildings
Other property	Patents, other assets

Per-Category Reporting

For Each Category	Report
Total cost	Maximum during year
Year-end cost	December 31 value
Income	All income from category
Gain/loss	If sold

Income Reporting

Types of Foreign Income

Income Type	Report
Interest	From foreign accounts
Dividends	From foreign shares
Rental income	From foreign property
Capital gains	On sale

Where Else to Report

Income	Also On
Interest	Schedule 4
Dividends	Schedule 4
Capital gains	Schedule 3
Rental	T776

T1135 is disclosure in addition to income reporting.

Penalties

Late Filing

Penalty	Amount
Minimum	$100
Daily penalty	$25/day
Maximum	$2,500

Failure to File

Situation	Penalty
Gross negligence	$12,000
Or	5% of cost of property
Whichever greater	More serious

Extended Assessment Period

Normal	3 years
If T1135 not filed	6 years
If never filed	No limit

Voluntary Disclosure

If You Haven’t Filed

Option	Details
Voluntary Disclosure Program	Reduced penalties
Requirements	Must be voluntary
Professional help	Recommended

Common Scenarios

Scenario 1: US Account

Facts
Canadian resident
US Charles Schwab account
Cost $120,000
T1135 required	Yes

Scenario 2: Canadian ETF

Facts
Canadian resident
VUN (Vanguard US Index)
Cost $200,000
Held at Questrade
T1135 required	No (Canadian fund)

Scenario 3: Foreign Rental

Facts
Canadian resident
Condo in Florida (rental)
Cost $150,000
T1135 required	Yes

Scenario 4: Vacation Home

Facts
Canadian resident
Vacation home in Arizona
Personal use only
Cost $300,000
T1135 required	No (personal use)

Checklist

Annually Review

Question	Yes/No
Any new foreign property?
Total cost >$100K?
Any exclusions apply?
T1135 required?

Documentation to Keep

Document	Purpose
Purchase records	Original cost
Account statements	Year-end values
Foreign tax slips	Income reporting
Exchange rates	For conversion