How do I report a foreign capital loss T1135 and can I use this loss to reduce Canadian capital gains?

[Tom_Cheng]

To determine your capital loss after selling foreign investments, you must subtract the adjusted cost base (the amount paid for the investment plus commission and fees) from the amount for which you sold the investment. If you are calculating capital loss for the sale of stock, do not include commission in the sale price.

No, you cannot offset. The purpose of Form T1135 is to identify a foreign property and not to calculate taxable income.

For more information, please click: Taxes From Selling Foreign Investments

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[scofenn]

I have a Foreign Property loss this year report on T1135.  Can this loss be used to offset a Foreign Property gain reported on T1135 in a previous year?  Why is it so difficult to find an answer to this question?

[Tom_Cheng]

As the previous post said, the purpose of Form T1135 is to identify the foreign property, not to calculate taxable income. Only Income generated from overseas assets will be taxed. There's no carry-back/forward of losses because you are not taxed on the amounts you enter on the T1135.

For more information, please click Questions and answers about Form T1135

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[scofenn]

I received a 2021 Foreign Income Verification Statement T1135 with a $3893. Loss.  The cost of the investment is under 100,000. therefore I do not fill out and submit a T1135? Kinda confusing when I receive a T1135 ad then there is a form of the same name that I either submit or not submit??  It is also stated in the guide that I need to report this income/loss this not right?  So, if the income is reported in 2020 can I not report a loss in 2021?  

[Tom_Cheng]

Canadian resident taxpayers must report and include in their income for Canadian tax purposes all the income they earn from the foreign property, regardless of the cost amount of the foreign property.

If the cost amount of the taxpayer's foreign property exceeds $100,000, the taxpayer must also file Form T1135.

(If your total foreign property is below $100,000, you shouldn't need to file a T1135 but you still need to report your investment income gain/loss.)

The $100,000 threshold means that many Canadians do not need to comply with the reporting requirements of Form T1135, but this does not exempt them from paying tax on any income earned on such property.

Report your foreign investment income in Line 12100.

For more information, please click:

Canada Revenue Agency(CRA) Questions and answers about Form T1135
Canada Revenue Agency(CRA) Line 12100 – Interest and other investment income

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