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Canadian taxes - T1135


rukawa
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It includes all foreign property including securities.

 

Whoever holds your investment accounts should be able to give you the bulk (in some cases you'll have to call them up and ask for the report).

 

Holdings in your registered accounts do not count towards the 100k threshold.

 

 

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It makes no sense the CRA makes Canadian residents do this for foreign securities held in Canadian brokerage accounts. Isn't the point to capture all income that wouldn't be captured by T-slips?

 

I use Quicken so it lets me produce reports that makes it a lot easier. Also, all foreign dividend income should be captured by T5 slips.

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I have done it for years except this year.  I just go through my monthly statements for my US holdings account and select the highest number.  Never been a problem. 

 

Related:  Are investors required to submit a T5008, or is that just a requirement of fiduciaries?  The statement from my broker is grossly inaccurate in terms of gains and losses because it only encompasses one year.  The S3 statement covers all this ground anyways. 

 

 

Nothing like leaving things to the last minute, eh.  Mind you, I did start this six weeks ago.

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Anybody ever have to fill this out. My undertanding is that anyone with more than $100k in foreign property has to fill this.

Yep, do it for myself, do it for clients. It can be a pain in the ass.

 

A few points.

 

1. The values for the 1135 are cost not market value.

2. Securities in TFSA and RRSP are not counted.

3. Foreign securities held at a Canadian institution do count.

4. If the cost cost of the securities is less than $250k then you can do the simplified version which is a lot easier to do.

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I have done it for years except this year.  I just go through my monthly statements for my US holdings account and select the highest number.  Never been a problem. 

 

Related:  Are investors required to submit a T5008, or is that just a requirement of fiduciaries?  The statement from my broker is grossly inaccurate in terms of gains and losses because it only encompasses one year.  The S3 statement covers all this ground anyways. 

 

 

Nothing like leaving things to the last minute, eh.  Mind you, I did start this six weeks ago.

Investors are not required to submit a T5008. Just leave the T5008 aside and calculate capital gains/losses yourself.

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I have done it for years except this year.  I just go through my monthly statements for my US holdings account and select the highest number.  Never been a problem. 

 

That number isn't actually what they're asking for.  According to this CRA link, for property held in an account with a Canadian registered securities dealer (section 7), they want the "maximum fair market value during the year". Most of the time that value will be an intraday value. It can only be calculated by recalculating the value of your account when the price of any foreign security in it changes, then figuring out what value is the highest (i.e. it requires taking into account millions of data poinnts and is basically impossible for anyone to calculate except maybe a brokerage).

 

That said, I basically do what you do. But it frustrates me that they're asking for information that's almost impossible to calculate and then making me assert that the number is accurate.

 

 

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I have done it for years except this year.  I just go through my monthly statements for my US holdings account and select the highest number.  Never been a problem. 

 

That number isn't actually what they're asking for.  According to this CRA link, for property held in an account with a Canadian registered securities dealer (section 7), they want the "maximum fair market value during the year". Most of the time that value will be an intraday value. It can only be calculated by recalculating the value of your account when the price of any foreign security in it changes, then figuring out what value is the highest (i.e. it requires taking into account millions of data poinnts and is basically impossible for anyone to calculate except maybe a brokerage).

 

CRA instructions explicitly say that month-end values are okay.

 

https://www.canada.ca/content/dam/cra-arc/formspubs/pbg/t1135/t1135-17e.pdf

 

Page 5, item 7.

 

"the maximum fair market value during the year may be based on the maximum month-end fair market value"

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I've done what EliG describes. So far, so good.

The form is a pain and I hope it is worth it for the CRA.

 

For interest, it seems that they are getting positive NPVs on their "efforts" to crack down.

https://www.canada.ca/en/revenue-agency/campaigns/about-canada-revenue-agency-cra/cracking-down-on-offshore-tax-evasion-aggressive-tax-avoidance/cracking-down-getting-results.html

 

They seem to focus on specific cases and have put more emphasis on the analysis of electronic fund transfers which are also "monitored" when more than 10K (CAD).

 

A nagging question is if it matters if you volunteer to raise funds or not.

http://www.cbc.ca/news/business/stephen-bronfman-trudeau-paradise-papers-1.4382511

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I have done it for years except this year.  I just go through my monthly statements for my US holdings account and select the highest number.  Never been a problem. 

 

Related:  Are investors required to submit a T5008, or is that just a requirement of fiduciaries?  The statement from my broker is grossly inaccurate in terms of gains and losses because it only encompasses one year.  The S3 statement covers all this ground anyways. 

 

 

Nothing like leaving things to the last minute, eh.  Mind you, I did start this six weeks ago.

Investors are not required to submit a T5008. Just leave the T5008 aside and calculate capital gains/losses yourself.

 

Thanks.  Thats what I have always done.

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Anybody ever have to fill this out. My undertanding is that anyone with more than $100k in foreign property has to fill this.

Yep, do it for myself, do it for clients. It can be a pain in the ass.

 

A few points.

 

1. The values for the 1135 are cost not market value.

2. Securities in TFSA and RRSP are not counted.

3. Foreign securities held at a Canadian institution do count.

4. If the cost cost of the securities is less than $250k then you can do the simplified version which is a lot easier to do.

 

I'm above 250k but I understand that if you hold it with Canadian Brokerage you can just report the total by country. Is that right.

 

How does one report this. Is it the total for each country for each Broker I have. So would it be something like this structure.

 

IB

USD

  Market value

  Cap gains

  Income

JPY

  Market value

    cap gains

  income

 

Questrade

USD

  Market value

  Cap gains

  Income

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I'm above 250k but I understand that if you hold it with Canadian Brokerage you can just report the total by country. Is that right.

 

How does one report this. Is it the total for each country for each Broker I have. So would it be something like this structure.

 

IB

USD

  Market value

  Cap gains

  Income

JPY

  Market value

    cap gains

  income

 

Questrade

USD

  Market value

  Cap gains

  Income

 

Yes. I report two lines in Section 7:

 

Broker 1, USA, ...

Broker 2, USA, ...

 

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