Should I have filed Form T1142 or T1135?

mrwa11eye1 · ‎October 30, 2019

Should I have filed Form T1142 in 2016 or T1135?

MIL from USA passed in Dec 2016. In 2016 hubby was given(beneficiary) 1/2 annuity .. which he could leave in place up to 5 years .. did withdraw some in 2016 and 2017. He also received a lump sum payment in 2016 for 1/2 value of her house. His sister handled everything in the USA, she filed for unsupervised probate to sell house.

I have been reporting the interest earned but did not file anyT1142 or T1135 for 2016, I thought CRA meant property as in real estate??. Anyhow, I did file T1135 in 2017??

Should I have filed a T1142 for 2016, should I be filing T1142 each year money is taken from this annuity? If so, if I file T1135 for other funds would I include the annuity on the T1135. Or is it not included because it is technically not distributed yet???

thanks, I will be using Turbo Tax this year for my taxes ..

TurboTaxLise · ‎October 30, 2019

Because there are multiple issues with filing a Trust return as well as T1 return from previous years for a deceased person, I would suggest you contact the CRA directly, they will give you directives on how to proceed with either the T1135 & T1142 for 2016 and onward. Keep in mind there are foreign tax implications that may need to be applied as well.

Here is how to reach them: 1-800-959-8281

Meanwhile, here are a few links that may assist you in understanding each form from the CRA

CRA Questions and answers about Form T1142: https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/information-been-mo...

CRA Questions and answers about Form T1135: https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/information-been-mo...

Also, here are TurboTax Tips for each as well.

TurboTaxTips: T1142 - https://turbotax.intuit.ca/tips/rules-for-inheriting-foreign-property-476

TurboTaxTips: T1135 - https://turbotax.intuit.ca/tips/t1135-tax-form-foreign-income-verification-400

Image added below - How to find Foreign Tax Credit (1/27/19)