Glossary
T1135
Foreign Income Verification Statement
T1135 is the form Canadian residents file to report specified foreign property — such as a US rental — when its total cost amount exceeds C$100,000 at any point in the year. It is a disclosure form, not a tax; missing it carries steep penalties even when no tax is owed.
Who it applies to: Canadian residents who own US (or other foreign) rental property over the C$100,000 cost threshold.
Key facts
- Threshold
- C$100,000 total cost amount
- Who files
- Canadian residents
- Type
- Disclosure form (not a tax)
- Risk
- Steep penalties for non-filing
How it works
- The test is the cost amount of your specified foreign property, not its current market value.
- Cross the C$100,000 threshold at any time in the year and the T1135 is required for that year.
- It reports the property's existence and income to CRA — it does not itself create a tax.
Related terms
Schedule E
The IRS form for reporting supplemental income and loss, including rental real estate — where a Canadian reports a US rental's income and expenses.
FBAR
A US Treasury (FinCEN) report of foreign financial accounts, required of US persons whose foreign accounts exceed US$10,000 in aggregate at any time in the year.
FIRPTA
A US withholding on the sale of US real property by a foreign person — generally 15% of the gross sale price, remitted to the IRS at closing. Not a final tax.
Frequently asked questions
What is the T1135 reporting threshold?
C$100,000 — based on the total cost amount of your specified foreign property at any point in the year, not its market value. A US rental's cost often crosses this on its own.
Is the T1135 a tax?
No. It is a disclosure form reporting foreign property to the CRA. No tax is due on the T1135 itself, but failing to file it carries significant penalties even when no tax is owed.
This definition is general information, not tax advice. See the full guide above and verify current rules with the CRA or IRS. ← Back to the glossary
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