Do you have foreign property outside Canada? Is it the home you or your family lived in (maybe they still do)? Or did you buy it to rent it out? Let me know in the comments 🙂
If I own an apartment outside Canada, which i'm giving to rent and my income is 500cad monthly. Should i report it in Canada? How to estimate the "cost amount" of it?
Great video, thanks. Just a quick question, what's really "Total Cost" and how do I know how much is it since there are so many trades and transactions in investments? Is this just the total "ACB" in schedule 3 (Cap. Gain/loss)?
Total cost is whatever you paid for the assets that are in question. So yes, if you're doing the trades within a financial institution or wealth management company and they send you reports showing the Adjusted Cost Base (ACB) or 'Book value,' that's the cost we're talking about. The good ones, seeing that you have an ACB>$100k outside of Canada, will actually summarize all the info you need to complete the T1135 on a separate report, making it easier to complete the form.
If you are a tax resident of Canada you have to report your worldwide income on your Canadian income tax return, including your rental income from a foreign property, and be taxed on it. The exact amount depends on all your other income but budget for around 30-35%. However, if the foreign country has *also* assessed tax (and they probably have), you can claim a credit to get a reduction in the tax you pay in Canada. You do this by filing additional forms with your tax return: T2209 Federal Foreign Tax Credits to reduce your federal tax, and the corresponding provincial form to reduce your provincial tax. Or you could pay someone else to do it for you -- like us!
I have 4 rental properties in USA and need to fill out the T1135. The form asks for “Max cost amount in 2021” and “Cost amount at year end”. How do I know what numbers to fill in? Everyone says that it is very important to fill out the T1135 but no one explains how to calculate these numbers. Can anybody help me??? Thank you.
If you have questions, don't toss it out to the RUclips commentariat! This is important, so why not talk to a professional? You can hire a tax advisor, or you can call the Canada Revenue Agency at 1-800-959-8281 and ask an agent to walk you through it. They really are there to help, they don't charge, and you don't need to provide any identifying information to get assistance like this. Also, every form put out by Canada Revenue Agency (CRA) has a guide or instructions, though they can be a bit dense to read. 'Cost amount' means what the assets cost you at the time you purchased them, expressed in Canadian dollars. 'Maximum' cost amount means, they want the cost amount for whatever assets you held, during the period in the year when you held the most assets. Cost amount at year end means, looking at whatever assets you held in the US at the end of the year, what was the cost amount of those assets? So if you held these same properties throughout the year, the maximum cost amount and the year end cost amount will be the same, because there was no particular time when you held more assets than at any other time in the year.
Hi, as a new immigrant and also the first year to report Canada tax, if I have more than CA$100,000 specified foreign property, do I check "YES" in line 26600 but do not need to complete T1135 form or just check "NO"? Many thanks!
First, make sure that the property you own back home is specified foreign property and not personal property. See CRA's guidance on this, particularly if it's real estate that you already owned for personal purposes. If it IS personal property, answer No to the question about owning specified foreign property (because personal property is NOT 'specified' foreign property) and don't complete T1135. If it is NOT personal property then you have to answer Yes to the question about owning foreign property costing over $100,000, and if you answer Yes to that question you need to complete T1135.
If you are a tax resident of Canada, yes you do. And you should probably hire a tax professional for this (like PersonalTaxAdvisors.ca, for example! 😁) You will be taxed on 50% of the capital gain earned during the time you owned the property. That gain calculation is based on the proceeds of the sale, minus what it cost you. Since you inherited it, the 'cost' would be replaced with whatever the fair market value of the property was as of the date you inherited it.
No. You don't have to report (via T1135) that you *own* foreign property unless it cost more than CA$100,000. However, if that property is earning income (e.g., rent), the income does need to be reported.
Hi! i am on my PGWP work permit in canada and have 2 properties back in India. one of them is for my family's primary residence and other one is rented. though the value of rented property doesn't exceed $100k. do I have to still fill T1135. Also, I am paying tax on my rental income back in India, do I have to still pay additional tax on it in Canada? pls suggest. Thanks
Hi, I am an international student in Canada in 2021 and currently on my 4th term. I sold my house in Singapore in 2022 and this property was my residence before coming to Canada. I did not rent out this property and therefore did not make income from it. Do I need to declare this property to CRA and will I be taxed from capital gains for selling it ?
You may owe some tax on *part* of the capital gain. You don't have to pay tax for capital gains earned during the period when you resided in the house as your principal residence, and in some cases a house can continue to be your principal residence even after you move, assuming you didn't purchase a new home so that you owned two houses at once. There can also be a foreign tax credit if the country where the house was located charges tax on the gain. It's too complicated for a RUclips comment, however. Contact a tax professional to discuss the details of your situation. Might I recommend Personal Tax Advisors? 😁
ok, I got my first T1135 from RBC. The max cost during the year is stated as 40158. So I don't have to file the T1135. However, I have a capital gain from the stock trades I did (almost 11000) how do I declare that? do I have to enter every trade? FYI I traded stocks for the first time.
Capital gains are usually reported on Schedule 3 of the income tax return. If your trades are handled through an entity that issues tax slips, you'll receive a T5008 slip that you can usually just enter, without doing any other calculations. If you don't get the slip, you'll have to do your own calculations. You don't have to enter every trade, but you do need to *calculate* the net gain (loss) of all your trades. You can just enter the final outcome on Schedule 3, but make sure you have a record of all your calculations and supporting documents in case CRA asks to see them. Good luck!
Hi, i immigrated from asia to canada in 2014 (24 yo) and i have this bank account opened since i was a student that gives up to 18% interest rate annualy. It’s less than $100k right now but eventually it will be more than that As i dont take it and just keep it there and the interest gains. I was told by my tax preparer that i dont need to report it since it’s
The information you were given is correct. Because the original deposit was under $100k, you don't have to report it. It's the cost to you that determines where that threshhold is. Nevertheless, you do need to report the interest earned every year as part of your income on your Canadian income tax return. -- Sunny ☀️
If you're living in Europe, you may not have to file Canadian taxes at all. But if you do have to file Canadian taxes: if you keep the apartment primarily for personal use it may be exempt from this form. [Disclaimer: I can't make a definitive statement regarding tax issues based on discussions here. Please contact our office for an actual consultation.]
Do you have foreign property outside Canada? Is it the home you or your family lived in (maybe they still do)? Or did you buy it to rent it out? Let me know in the comments 🙂
If I own an apartment outside Canada, which i'm giving to rent and my income is 500cad monthly. Should i report it in Canada? How to estimate the "cost amount" of it?
I do own 2 properties, but its not for rental or generating income off of it. So i should be okay isnt it ?
Great video, thanks. Just a quick question, what's really "Total Cost" and how do I know how much is it since there are so many trades and transactions in investments? Is this just the total "ACB" in schedule 3 (Cap. Gain/loss)?
Total cost is whatever you paid for the assets that are in question. So yes, if you're doing the trades within a financial institution or wealth management company and they send you reports showing the Adjusted Cost Base (ACB) or 'Book value,' that's the cost we're talking about. The good ones, seeing that you have an ACB>$100k outside of Canada, will actually summarize all the info you need to complete the T1135 on a separate report, making it easier to complete the form.
If you pay taxes on rental income in a foreign country do you have to still pay taxes again in Canada? How much?
If you are a tax resident of Canada you have to report your worldwide income on your Canadian income tax return, including your rental income from a foreign property, and be taxed on it. The exact amount depends on all your other income but budget for around 30-35%. However, if the foreign country has *also* assessed tax (and they probably have), you can claim a credit to get a reduction in the tax you pay in Canada. You do this by filing additional forms with your tax return: T2209 Federal Foreign Tax Credits to reduce your federal tax, and the corresponding provincial form to reduce your provincial tax. Or you could pay someone else to do it for you -- like us!
I have 4 rental properties in USA and need to fill out the T1135. The form asks for “Max cost amount in 2021” and “Cost amount at year end”. How do I know what numbers to fill in? Everyone says that it is very important to fill out the T1135 but no one explains how to calculate these numbers. Can anybody help me??? Thank you.
If you have questions, don't toss it out to the RUclips commentariat! This is important, so why not talk to a professional? You can hire a tax advisor, or you can call the Canada Revenue Agency at 1-800-959-8281 and ask an agent to walk you through it. They really are there to help, they don't charge, and you don't need to provide any identifying information to get assistance like this. Also, every form put out by Canada Revenue Agency (CRA) has a guide or instructions, though they can be a bit dense to read.
'Cost amount' means what the assets cost you at the time you purchased them, expressed in Canadian dollars. 'Maximum' cost amount means, they want the cost amount for whatever assets you held, during the period in the year when you held the most assets. Cost amount at year end means, looking at whatever assets you held in the US at the end of the year, what was the cost amount of those assets?
So if you held these same properties throughout the year, the maximum cost amount and the year end cost amount will be the same, because there was no particular time when you held more assets than at any other time in the year.
Hi, as a new immigrant and also the first year to report Canada tax, if I have more than CA$100,000 specified foreign property, do I check "YES" in line 26600 but do not need to complete T1135 form or just check "NO"? Many thanks!
First, make sure that the property you own back home is specified foreign property and not personal property. See CRA's guidance on this, particularly if it's real estate that you already owned for personal purposes. If it IS personal property, answer No to the question about owning specified foreign property (because personal property is NOT 'specified' foreign property) and don't complete T1135.
If it is NOT personal property then you have to answer Yes to the question about owning foreign property costing over $100,000, and if you answer Yes to that question you need to complete T1135.
What if you inherited the property and you go to sell it. Do you pay capital gains in Canada?
If you are a tax resident of Canada, yes you do. And you should probably hire a tax professional for this (like PersonalTaxAdvisors.ca, for example! 😁)
You will be taxed on 50% of the capital gain earned during the time you owned the property. That gain calculation is based on the proceeds of the sale, minus what it cost you. Since you inherited it, the 'cost' would be replaced with whatever the fair market value of the property was as of the date you inherited it.
What happens if you have property less that $100k? Still have to report to CRA? Thanks
No. You don't have to report (via T1135) that you *own* foreign property unless it cost more than CA$100,000. However, if that property is earning income (e.g., rent), the income does need to be reported.
@@personaltaxadvisors Hi, for real estate property, is 100kCAD the purchase amount or current market value?
Hi! i am on my PGWP work permit in canada and have 2 properties back in India. one of them is for my family's primary residence and other one is rented. though the value of rented property doesn't exceed $100k. do I have to still fill T1135. Also, I am paying tax on my rental income back in India, do I have to still pay additional tax on it in Canada? pls suggest. Thanks
thank you for this short beautiful and informative video
Hi, I am an international student in Canada in 2021 and currently on my 4th term. I sold my house in Singapore in 2022 and this property was my residence before coming to Canada. I did not rent out this property and therefore did not make income from it. Do I need to declare this property to CRA and will I be taxed from capital gains for selling it ?
You may owe some tax on *part* of the capital gain. You don't have to pay tax for capital gains earned during the period when you resided in the house as your principal residence, and in some cases a house can continue to be your principal residence even after you move, assuming you didn't purchase a new home so that you owned two houses at once. There can also be a foreign tax credit if the country where the house was located charges tax on the gain. It's too complicated for a RUclips comment, however. Contact a tax professional to discuss the details of your situation. Might I recommend Personal Tax Advisors? 😁
ok, I got my first T1135 from RBC. The max cost during the year is stated as 40158. So I don't have to file the T1135. However, I have a capital gain from the stock trades I did (almost 11000) how do I declare that? do I have to enter every trade? FYI I traded stocks for the first time.
Capital gains are usually reported on Schedule 3 of the income tax return. If your trades are handled through an entity that issues tax slips, you'll receive a T5008 slip that you can usually just enter, without doing any other calculations. If you don't get the slip, you'll have to do your own calculations. You don't have to enter every trade, but you do need to *calculate* the net gain (loss) of all your trades. You can just enter the final outcome on Schedule 3, but make sure you have a record of all your calculations and supporting documents in case CRA asks to see them. Good luck!
@@personaltaxadvisors Thanks for the advise. With that I figured it out and my refund is already in my account. Very much appreciated.
Hi, i immigrated from asia to canada in 2014 (24 yo) and i have this bank account opened since i was a student that gives up to 18% interest rate annualy. It’s less than $100k right now but eventually it will be more than that As i dont take it and just keep it there and the interest gains. I was told by my tax preparer that i dont need to report it since it’s
The information you were given is correct. Because the original deposit was under $100k, you don't have to report it. It's the cost to you that determines where that threshhold is. Nevertheless, you do need to report the interest earned every year as part of your income on your Canadian income tax return. -- Sunny ☀️
Does my apartment in Europe, which i currently live in need to be reported?
If you're living in Europe, you may not have to file Canadian taxes at all. But if you do have to file Canadian taxes: if you keep the apartment primarily for personal use it may be exempt from this form. [Disclaimer: I can't make a definitive statement regarding tax issues based on discussions here. Please contact our office for an actual consultation.]
great video. thanks for the explanation!
more than $100,000? nope 😎
😜