Cross-Border Taxation is not as complicated as it sounds. Infant its a pretty easy concept. For example, if you own a property in a foreign country which is worth more than $100,000 you should make sure to complete Form T1135. If you fail to fill this form you will have to pay penalties for committing a crime.
Foreign investment property is not limited to real estate. When it comes to income tax there are many things which are considered foreign property. These also include the funds you hold in foreign accounts such as bonds. Filing of Form T1135 has never been easier thanks to the government of Canada.
T1135 Foreign Income Verification Statement
As you saw before if you own a foreign property which is worth more than $100,000 you need Cross-Border Taxation. Individuals, Co-corporations, and Partnerships should also complete this form if they own this much property. When you complete the tax return you need to answer the question mentioned above. If you or your accountant forgot to complete this form in a previous year, you may be able to claim a Voluntary Disclosure to avoid paying any stiff penalties.
Specified Foreign Property
Foreign Investment Property is not limited to real estate. Foreign investment property which must be reported includes funds which are held by you in bank accounts, shares of a company you hold, interest you hold in non-resident funds and bonds issued by foreign government.
Changes to Form T1135
Filling forms got easier since 2015 as the forms got redesigned. This new design of the form to allow tax payers who have between $100,000 and $250,000 have to tick box A. Previously they had to describe every property they had. In part B which is also known as the detailed method applies to taxpayers who have more than $250,000 in foreign investment.
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