Do you own foreign property worth over $100,000?

As a Canadian resident, you have to report the income you’ve earned from both Canadian and foreign sources. This includes reporting any specified foreign property you held in 2024 that’s worth over $100,000 CAD on the T1135: Foreign Income Verification Statement form.

Note: There are substantial penalties for not completing and filing the T1135 form by the due date. Refer to the Canada Revenue Agency (CRA) website for more information.

According to the CRA, specified foreign property includes:

  • Bank accounts held abroad (interest income)
  • Debt securities and shares of foreign corporations (mutual funds, shares, bonds, or debentures) and debt owed by a non-resident, including governments
  • Real estate
  • An interest in a partnership that holds a specified foreign property unless the partnership is required to file a T1135
  • A life insurance policy issued by a foreign issuer
  • Other tangible and intangible (like patents or copyrights) properties located outside Canada

Specified foreign property does not include:

  • Property used or held exclusively in the course of carrying on an active business
  • Registered pension fund investments
  • Foreign investments held in Canadian registered mutual funds
  • Personal-use properties (cottages, paintings, jewelry, automobiles)
  • Shares of a foreign affiliate

Follow these steps in H&R Block’s 2024 tax software to report your foreign property on the T1135 page:

  1. On the left navigation menu, under the Credits & deductions tab, click Required.
  2. Click the Special situations heading.
  1. Answer Yes to the question, At any time in 2024, did you own or hold specified foreign property with a total cost of more than $100,000 CAD?, then click Continue.

  2. When you arrive at the Foreign income verification statement page, enter information for your foreign property into the tax software.