Specified Foreign Property
Some taxpayers might think that the term “foreign property” just refers to real estate, when it refers to a lot more. Here are some examples of foreign investment property you must include on Form T1135:
A life insurance policy you own from a foreign issuer
Interest you own in any offshore mutual funds
Any real estate you own held outside Canada
Money in a foreign bank account
Shares you own of a foreign company
Interest you hold in a non-resident trust
Bonds or debentures owned from foreign countries
Any other income you earn from foreign property.
Foreign Property You Don’t Need to Declare Not all foreign property above the $100,000 limit needs to be declared on your tax return.
Any investments you hold inside your Registered Retirement Savings Plan and Tax-Free Savings Account don’t need to be included as specified foreign property. Here are some other examples of foreign property you can exclude:
Any property you own primarily for personal use, including your automobile, cottage, paintings and jewelry
Any property you use for running a business like a building, equipment and inventory
It’s important to remember that just because a company’s stock is traded on a foreign stock exchange, doesn’t mean you have to include it as foreign income. Many Canadian companies are traded in this manner; you aren’t required to count these towards the $100,000 limit for foreign property.