When the CRA originally released the new version of Form T1135 they received some heavy criticism, especially from CPAs. The new form was confusing and very time consuming to prepare (especially if you held securities with a foreign bank).
Due to all the push back and complaints the CRA recently released another revised version of Form T1135. The new Form T1135 offers some relief to taxpayers whose cost of all specified foreign property held at any time during the year exceeds $100,000 but was less than $250,000.
These qualifying taxpayers can either use the much easier reporting option in which they only have to complete Part A of the form or choose the previous detailed version and complete Part B of the form.
If the taxpayers cost of all specified foreign property exceeds $250,000 at any time during the year then they are required complete Part B of the form.
For the lucky taxpayers who only have to complete Part A, the form becomes much easier. They basically only have to provide the following:
- The taxpayer’s information (i.e. name, address, SIN, etc.);
- Check the boxes that describe the type of specified foreign property that they held during the year;
- List the top three country codes that the taxpayer holds specified foreign assets in. Based on maximum costs for the year;
- Disclose the income from all specified foreign property and any gain(loss) from the disposition of specified for property.
I’m sure most, if not all, qualifying taxpayers and tax professionals will welcome the new simplified reporting method.
If you have any questions about the T1135, please don’t hesitate to contact one of our qualified professionals.