Whether you need to declare income from outside sources is dependent on a variety of factors, ranging from the type of income you have earned to the size and quantity of your investments. You can learn about some of the common instances for declaring foreign income in the information provided, or contact us to find out more.
All amounts must be reported in Canadian dollars.
- Use the Bank of Canada exchange rate that was in effect on the day you received the income.
- If you received this income a number of times during the year, use the average annual exchange rate.
Foreign income
If you paid withholding taxes to a foreign country on the income you earned, the CRA doesn't allow you to decrease your income by that amount. Instead, you may claim a foreign tax credit on your federal return.
Capital gains
If you immigrated to Canada and became a resident, then there is a deemed disposition and deemed re-acquisition of any property that you held or brought with you. This forms a cost base for all the property you held at the time you became a resident. If you dispose of any property (for example, by selling it), this cost base will be used to calculate your capital gain or loss.
Foreign property and investments (T1135)
The CRA requires you to report foreign property and investments if the total cost is greater than $100,000 CAD at any time during the year. The CRA could impose penalties for failing to report this information on your T1135.
