YowToon

Hi all,

My Canadian wife returned to Canada as a resident in Jan 2017 after a decade being nonresident. I became a first time Canadian permanent resident in Feb 2017. We both were in the UK previously. I've yet to do the maths but the value of our property in the UK is very likely over the C$100k threshold meaning we need to file T1135 for 2017.

However .... T1135 guidance says "An individual (other than a trust) does not have to file Form T1135 for the year in which the individual first becomes a resident of Canada". From this I'm thinking I don't need to file one for 2017 regardless of UK property value. Is this accurate? And what about my wife as a returning resident after a decade of being nonresident?

Thanks.

Aviator

Options include using an accountant, there is a trace of due diligence, contact CRA in writing and ask for a written determination (verbal over the phone is not traceable).

From what I recall, returning residents are required to file the T1135 right away.

Will_PA

I have also been reading into this and will seek professional advice, but conclusion I've drawn is I'm exempt from filing that form until next year (I arrived Sept 2017).

Aviator

Returning residents are not exempt. It is not a big deal anyway, file this year or next. There is no cost to file, there is a cost however for not filing when due.

37. What is the reporting requirement for new immigrants? How is the cost amount determined for property that was owned at the time of immigration to Canada?
An individual does not have to file Form T1135 for the tax year in which he or she first became resident in Canada. For a new resident, the cost amount of foreign property is its fair market value at the time he or she first became resident in Canada. Use this fair market value in determining the new resident’s Form T1135 filing requirement in future years.


https://www.google.ca/url?sa=t&rct=j...UCOl5AHB-tVghf


Question 15.

15. Is Form T1135 reporting required for properties owned prior to becoming a Canadian resident?

ANSWER: There is no exception for property owned when an individual becomes a Canadian resident. Section 233.7 exempts individuals (other than trusts) from filing Form T1135, among other disclosures, for the year in which they first become resident in Canada. However, former residents returning to Canada are required to file Form T1135 in the year of their return.

Phaedru5

Is the T1135 necessary for ALL new and returning residents or only those that have tax obligations in the UK? We are selling up everything including our one and only house and bringing everything to BC and buying a house here, leaving nothing but our memories in the UK - will we need a T1135? I am going to get an accountant for the first couple of years but just wondered right now seeing this thread.

Aviator

Every tax resident must file a T1135 if they meet the foreign asset requirements. New residents do not need to file in the first year of residency. Penalties for not doing so are high.