Tax glossary

T1135

Short answer

The T1135 is an information return required when the total cost of your specified foreign property exceeds $100,000 CAD at any point in the year.

Last reviewed: August 20, 2026

Key facts

Category	Personal tax
Also known as	Foreign Income Verification Statement
Filed by	Residents holding specified foreign property above the cost threshold at any time in the year
Threshold	Total cost of over CAD 100,000, measured at cost, not market value
Deadline	The same as the income tax return
Excluded	Personal-use property and assets held in registered plans
Authority	Canada Revenue Agency

What it means in practice

The test is cost, not market value, and it is cumulative across all specified foreign property — foreign bank accounts, foreign securities held in a non-registered account, foreign rental real estate, and debts owed by non-residents. Property held inside an RRSP or TFSA is excluded, as is foreign personal-use property such as a vacation home you do not rent out. Foreign shares held through a Canadian broker still count. The penalty for not filing is charged per month and is one of the steepest in the Act, and it applies even when the property produced no income and no tax was avoided.

What counts, and what surprises people

The threshold is measured at cost and applies to the total, not to any single asset. Foreign bank accounts, shares of non-resident corporations, foreign real estate held for rental or investment, and debt owed by non-residents all count. What catches people out is that shares of a foreign company held in a Canadian brokerage account are specified foreign property. Someone who never sent money abroad can still be over the threshold through an ordinary investment account. A foreign vacation home used personally is excluded, but the same property rented out is not. So is anything inside an RRSP or TFSA.

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FAQ

Does the T1135 mean I owe extra tax?

No. It is an information return, not a tax calculation — the income from those assets is already reported on your return. The filing exists so the CRA can verify that it was.

What if I should have filed for earlier years?

The penalties for failing to file are severe and can accrue per year, and the reassessment period for a year with an unfiled or incomplete T1135 is extended. The Voluntary Disclosures Program is the usual route to correcting past years, and it must be initiated before the CRA contacts you about it.

Sources

Need this applied to your situation?

A definition only gets you so far. Talk to a Montréal CPA about what this means for your return — in English or French.

Contact (438) 375-3649