T1135 Form

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AltaRed
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Re: 2014 - T1135 Form

Post by AltaRed »

Don't know but you do realize you are already 2 days late? Deadline of Apr 30th was not changed AFAIK.
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Re: 2014 - T1135 Form

Post by Come on Eileen »

Apparently you can file electronically if you are an individual.

http://www.cra-arc.gc.ca/E/pbg/tf/t1135/README.html
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Re: 2014 - T1135 Form

Post by AltaRed »

Yabbut the question was around specific tax software filinh capability. Some do, some don't.
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Re: 2014 - T1135 Form

Post by IdOp »

AltaRed wrote:Don't know but you do realize you are already 2 days late? Deadline of Apr 30th was not changed AFAIK.
See DavidR's post a short distance up-thread.
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Re: 2014 - T1135 Form

Post by AltaRed »

I saw that but think it is a matter of interpretation. I wouldn't hang my hat on that. That said, I am never up against the wire anyway... no reason not to file once one is done with all the late T3s, etc.
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Re: 2014 - T1135 Form

Post by DenisD »

travesty wrote:Does anyone know if you can file your T1135 electronically using a software suite like StudioTax if you already filed your return with a different suite (e.g., TurboTax) which does not support electronic filing of the T1135?
I know with SimpleTax the T1 and T1135 are submitted separately. You get different CRA confirmation numbers. Most likely, all the tax programs who can submit a T1135 work the same. I submitted the T1 first. I don't know if it would let you submit the T1135 without first submitting the T1. In any case, you would have to enter all the T1 information. Probably best to just mail it in.
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Re: 2014 - T1135 Form

Post by MALDI_ToF »

travesty wrote:Does anyone know if you can file your T1135 electronically using a software suite like StudioTax if you already filed your return with a different suite (e.g., TurboTax) which does not support electronic filing of the T1135?

I find it absurd that a couple of the free/budget packages have implemented free filing for this form, while the "big two" of UFile and TurboTax have not. I've been a TurboTax user for a while, but I will check my options when I file next year.
I use Simple Tax and I know that with that they were sent separately. I had to click one button for the T1135 and got a confirmation number for that. Then I had to click a different one to send the return. I suppose you could try.
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Re: 2014 - T1135 Form

Post by Arby »

MALDI_ToF wrote: I use Simple Tax and I know that with that they were sent separately. I had to click one button for the T1135 and got a confirmation number for that.
Are you able to see a confirmation for the T1135 on your CRA My Account?

Given the penalties for late filing of the T1135, I'm always concerned whether CRA has received my snailmail T1135, but I couldn't find any confirmation of receipt on My Account.
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Re: 2014 - T1135 Form

Post by travesty »

AltaRed wrote:Don't know but you do realize you are already 2 days late? Deadline of Apr 30th was not changed AFAIK.
Yes, I realize. Better late than never, right?

I'm hoping the extension for general returns applies to the T1135 as well, but if it doesn't I may be out some $$$. In any case, the minimum fine is $100, so once I missed the exact day, I had 4 days to figure out what to do, right?
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Re: 2014 - T1135 Form

Post by MALDI_ToF »

Arby wrote:
MALDI_ToF wrote: I use Simple Tax and I know that with that they were sent separately. I had to click one button for the T1135 and got a confirmation number for that.
Are you able to see a confirmation for the T1135 on your CRA My Account?

Given the penalties for late filing of the T1135, I'm always concerned whether CRA has received my snailmail T1135, but I couldn't find any confirmation of receipt on My Account.
No. But then I didn't see anything for prior years when I mailed it in (or I simply don't know where it would be on their website).
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Re: 2014 - T1135 Form

Post by rjsc »

Hi, wondering if I could get a little help on figuring out how to fill out this T1135. This is my second year doing it and I am still very confused and the more I read up on the T1135, the more I think I might have done last year's totally wrong. (As an aside, once I figure out how to do this, should I send in a corrected 2013 T1135?)

I am American and when I was born, my parents put $1500 into a mutual fund. Over the last few years, I've been given more responsibility over the management of this fund and deciding what I want to do with it.

I am very, very confused about reporting the "cost amount" to the CRA. It still doesn't make sense to me.

I suppose my biggest question is, am I reporting how much an investment cost me in 2014 alone? For example, I may have this mutual fund that's been hanging around for almost 30 years. Does the original investment amount matter in my calculations of my ACB for the T1135?

The only "costs" I've had this past year are dividend and capital gain reinvestments. Do I just need to report those?

Finally, I have a 5% ownership in my grandmother's old house and it is being used for a rental property right now. How would I report the "cost" amount for this property if I only have a 5% ownership? I am not involved in the day-to-day management of the property.
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Re: 2014 - T1135 Form

Post by DavidR »

rjsc, you only need to fill the form out if you have Cost amounts > $100,000 in total for all of your foreign assets. See the question on page two of your income tax return.
Do you own a bunch of US or foreign stocks? If all you own is the one mutual fund and the 5% house, then you are likely far below $100,000?
If your grandmother's house was worth $300,000 when you inherited it, then your 5% is $15,000
Your mutual fund cost amount may have grown through reinvested income. The annual statement might show your cost basis. The cost is most likely less than its market value...
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Re: 2014 - T1135 Form

Post by travesty »

travesty wrote:
AltaRed wrote:Don't know but you do realize you are already 2 days late? Deadline of Apr 30th was not changed AFAIK.
Yes, I realize. Better late than never, right?

I'm hoping the extension for general returns applies to the T1135 as well, but if it doesn't I may be out some $$$. In any case, the minimum fine is $100, so once I missed the exact day, I had 4 days to figure out what to do, right?
FWIW, I was never assessed any penalty last year for filing my T1135 a few days after April 30th. So either the extended return deadline applied to the T1135 also, or they just aren't assessing penalties that strictly.
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Re: 2014 - T1135 Form

Post by travesty »

travesty wrote:Does anyone know if you can file your T1135 electronically using a software suite like StudioTax if you already filed your return with a different suite (e.g., TurboTax) which does not support electronic filing of the T1135?

I find it absurd that a couple of the free/budget packages have implemented free filing for this form, while the "big two" of UFile and TurboTax have not. I've been a TurboTax user for a while, but I will check my options when I file next year.
To belatedly answer my own question - it is possible, at least in 2015. I used TurboTax to do my return, but it doesn't offer filing of the T1135. I then used SimpleTax to submit my T1135. The submission/netfile process for the T1135 is a separate action, so you can submit it alone, without ever netfiling the T1 with that software. You do have to "re-do" your return in SimpleTax, but with Auto-fill that's pretty simple. Of course, you can omit most things which don't affect the T1135 (pretty much everything) to save time.
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Re: 2014 - T1135 Form

Post by Thegipper »

Snowbirds maintaining US bank accounts [with USA banks] for their winter months. It would not be unusual to put 20 or 25 in such accounts on an annual basis. If I understand this filing requires all assets at cost exceeding a 100k must be reporrted. If a person spent 7 or 8 years down south and put this kind of money into his USA bank per year would he be subject to this filing and penalties for not filing ? I hate this sort of intrusion and screw job. The solution is to avoid any banking with a USA bank ?
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Re: T1135 Form

Post by AltaRed »

No if your total US domiciled assets do not exceed $100k CAD cost basis. But that cash does count towards your $100k CAD threshold for reporting. I report my US domiciled bank account on the form each year (with associated year maximum, year end, and income numbers) Cat 1 I believe on the form.
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Re: T1135 Form

Post by SQRT »

AltaRed wrote: 08 Apr 2017 09:52 No if your total US domiciled assets do not exceed $100k CAD cost basis. But that cash does count towards your $100k CAD threshold for reporting. I report my US domiciled bank account on the form each year (with associated year maximum, year end, and income numbers) Cat 1 I believe on the form.
I transfer funds to my USD US based accounts every few months. I have 3 such accounts and am always careful not to have them total $100k at any point in the year. Thus avoiding T1135 reporting. My house in Arizona is excluded from the reporting as it is solely for my personal use. I had to file a T1135 this year for my deceased FIL. First time I have seen it.
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Re: T1135 Form

Post by auntyvirus »

What about USD accounts offered by a bank in Canada?
Are they subject to the T1135 filing if they reach CAD$100,000?
Does it make any difference if the account is a savings account or a money market fund?
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Re: T1135 Form

Post by AltaRed »

Neither a USD bank account nor a USD MMF domiciled in Canada counts, nor does USD cash sitting in a Canadian brokerage account. The operative phrase is 'domiciled in USA' in order to count.
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Re: T1135 Form

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I have a bank account in the USA. I think at this stage I am okay. Next year I will be using a Canadian bank with a USA account and using my Amazon CC. Better to be safe then sorry.
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Re: T1135 Form

Post by retireat50 »

Is it a general rule that if you have 1042-S income that you should fill out t-1135 (I am talking about six figure income on 1042-s)?

Basically the situation is that my brother works for Canadian domiciled company that is part of a world wide conglomerate based in the US. Their employee stock plan automatically redeems a certain number of shares every year and this income is reported on a 1042-S. I believe though the registrar of the plan has a Canadian address. We of course report the foreign income every year but have never filled out the t-1135. He has been audited one time now on the foreign income post t-1135 introduction and it was not one of the questions CRA had. Probably the best bet might be to check with his corporate office?
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Re: T1135 Form

Post by travesty »

It's T1135 time again for me, and SimpleTax says:
If you held a number of properties with a Canadian registered securities dealer or trust company, you can combine all those assets on a country-by-country basis under the first question.
Let's assume that my only foreign holdings were US stocks help with a Canadian broker. It seems the above applies to me and I can use 1 line in the "first question" to report them.

Later in that section it says:
Did you hold shares of non-resident corporations (other than foreign affiliates)?
The plain answer to this question is yes - but am I correct in assuming that because I've already entered this information under the first question, grouped by country as allowed by the "Canadian deal" exception, I just enter "no" here? Otherwise, the exception would be pointless since putting "Yes" requires me to enter asset-by-asset information in that section. I assume the idea is that you report each property under exactly one category, not multiple...

Screenshot:
T1135-snip.PNG
You can read the CRA's FAQ on this question but it just explains (as SimpleTax does) that you can group your investments from a Canadian dealer but isn't particularly explicitly about the remaining sections.
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Re: T1135 Form

Post by DavidR »

Category 7 of form T1135 is for holdings through a Canadian broker.
It appears to me that Simple Tax's 6 questions match up with the other 6 categories.

If all your foreign shares are with a Cdn broker, and you report as Category 7, then there is no need to fill out Category 2. So I agree with you, you may answer Simple tax's question with a No.
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Re: T1135 Form

Post by SQRT »

auntyvirus wrote: 08 Apr 2017 13:16 What about USD accounts offered by a bank in Canada?
Are they subject to the T1135 filing if they reach CAD$100,000?
Does it make any difference if the account is a savings account or a money market fund?
No. The issue is foreign situated accounts, not their currency.
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Re: T1135 Form

Post by KFried »

Last year I've inherited overseas:

One property that I've sold for 42k.
One studio apartment where my father lives Nov-Mar - 30k
Half of an apartment where my father lives the rest of the year - 70/2=35k

Do the apartments qualify as personal use, meaning my total is under the 100k threshold ?

Also, say I'm over the 100k, where on the T1135 Part A do I fill in the sum ? (and why would one use Part B, as it looks more trouble)
Can only think of 'Gain(loss) from the disposition from all specified foreign property' (no income generated)

thank you
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