Form T1135 (Foreign Income Verification) T1135

A CRA form Canadians must file when their foreign property cost more than CAD 100,000 at any point in the year.

Part of the Cross-Border Investing (CA + US) course · Lesson 15 of 17

Formula

File if max(total cost of specified foreign property during the year) > CAD 100,000

What it is

Form T1135, the Foreign Income Verification Statement, is a Canada Revenue Agency (CRA) disclosure form. A Canadian resident must file it if the total cost (not market value) of their specified foreign property exceeded CAD 100,000 at any time during the year. Specified foreign property includes foreign stocks and bonds held in non-registered accounts, foreign bank accounts, and certain other assets.

Why it matters

Filing is a reporting requirement, not an extra tax, but missing it carries steep penalties — commonly CAD 25 per day up to CAD 2,500, and more for gross negligence. Many Canadians who buy U.S. stocks in a regular brokerage account cross the threshold without realizing it. Knowing the rule helps you avoid penalties even when you owe no additional tax.

How it's calculated

Add up the cost amount (generally what you paid, in CAD) of all specified foreign property you held at any point in the year; if that total ever exceeded CAD 100,000, you must file. A simplified reporting method (Part A) is available when the total cost stays between CAD 100,000 and CAD 250,000.

How Quintarthai uses it

Quintarthai's company pages give you the fundamentals and current value of individual U.S. names, useful context when sizing up your foreign-asset exposure — research a U.S. company; the T1135 threshold is based on cost, so confirm filing with a tax professional.

Cross-border note. This is a Canada-specific form aimed largely at foreign (often U.S.) holdings. Property held in registered plans (RRSP, RRIF, TFSA) is excluded, and U.S. shares held inside Canadian mutual funds generally do not count — but U.S. stocks in a non-registered brokerage account do. The test is cost, not market value.

FAQ

Do I file T1135 just because I own a few U.S. stocks?

Only if the total cost of all your specified foreign property exceeded CAD 100,000 at any time in the year. Below that, no filing is required, though you still report the income.

Do U.S. stocks in my RRSP or TFSA count toward the threshold?

No. Foreign property held inside registered plans like RRSPs, RRIFs, and TFSAs is excluded from the T1135 calculation.

See Form T1135 (Foreign Income Verification) on a real company

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