Foreign properties, cost amount

[bhc20003]

Hello, my wife and I moved back to Canada on July 7, 2022 after away for 7 years.  We are confused about form T1135.  One part says the cost amount of foreign properties held is the fair market value on residence date.  And the form also says report maximum cost amount for the year.  So, not sure which to report.

Also, we have US mutual funds, do we include the distributions (not from sales, but from dividends and capital gains) in the gross income column?

Do we need to include IRA and Roth IRA accounts as foreign properties?

Any help much appreciated.  Many thanks in advance.

Cheers,

Bernard

[Marc_J]

Hi bhc20003,

There are different scenarios for form T1135. 

1. If you are completing for property costing less than $250,000, you would:
   • Include the cost of all your specified foreign property. If you did not purchase any new property since moving back to Canada, the cost would be equal to the FMV of the property when you moved back.
   • The income generated from the mutual funds (interest, dividends and capital gains) would be reported on your income tax return and on the T1135
   • You do not need to include your IRA as it is treated as an RRSP
   • If you continued to contribute to your Roth IRA, you would then need to include the cost of the Roth IRA on the T1135.

For further information on the Roth IRA, you can go to:

https://www.canada.ca/en/revenue-agency/services/tax/technical-information/income-tax/income-tax-fol...

I hope that helps!

Have a great day.

[bhc20002]

Many thanks Marc_J, much appreciated.

Cheers,

Bernard