Tax confirmation again t1135 😀
Feb 24th 2017, 5:19 pm
#1
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Joined: Dec 2010
Location: Whitby, Ontario
Posts: 730
Tax confirmation again t1135 😀
Quote:
'Actually i just noticed that the t1135 form actually asks what the value of the property was during the year and at the end of the year, so wouldn't i have to put down the entire value rather than my share?
No, they want the cost of your share. For tax purposes your cost is your share of the market value on the day you moved to Canada converted at the exchange rate ruling on that day. Unless you do some major renovations the maximum cost and the year-end cost will be the same. If you never do any renovations it will be the same every year.
Just searched and came across this Q and A from last year which I don't remember seeing previously so just sharing again to confirm it.
So for the T1135, if the value of my UK house exceeded $100k when I moved to Canada - let's say $500k equivalent on the day I moved over - that is the figure I insert in Box 5 for both Max cost during Year and cost amount at end of year, assuming I carry out no renovations in the year? And this figure will remain the same every year (assuming no work done)?
And for income, the figure I work out from my tax sheet (income minus costs)?
'Actually i just noticed that the t1135 form actually asks what the value of the property was during the year and at the end of the year, so wouldn't i have to put down the entire value rather than my share?
No, they want the cost of your share. For tax purposes your cost is your share of the market value on the day you moved to Canada converted at the exchange rate ruling on that day. Unless you do some major renovations the maximum cost and the year-end cost will be the same. If you never do any renovations it will be the same every year.
Just searched and came across this Q and A from last year which I don't remember seeing previously so just sharing again to confirm it.
So for the T1135, if the value of my UK house exceeded $100k when I moved to Canada - let's say $500k equivalent on the day I moved over - that is the figure I insert in Box 5 for both Max cost during Year and cost amount at end of year, assuming I carry out no renovations in the year? And this figure will remain the same every year (assuming no work done)?
And for income, the figure I work out from my tax sheet (income minus costs)?
Feb 24th 2017, 6:29 pm
#2
Binned by Muderators
Joined: Jul 2007
Location: White Rock BC
Posts: 11,682
Re: Tax confirmation again t1135 😀
Quote:
'Actually i just noticed that the t1135 form actually asks what the value of the property was during the year and at the end of the year, so wouldn't i have to put down the entire value rather than my share?
No, they want the cost of your share. For tax purposes your cost is your share of the market value on the day you moved to Canada converted at the exchange rate ruling on that day. Unless you do some major renovations the maximum cost and the year-end cost will be the same. If you never do any renovations it will be the same every year.
Just searched and came across this Q and A from last year which I don't remember seeing previously so just sharing again to confirm it.
So for the T1135, if the value of my UK house exceeded $100k when I moved to Canada - let's say $500k equivalent on the day I moved over - that is the figure I insert in Box 5 for both Max cost during Year and cost amount at end of year, assuming I carry out no renovations in the year? And this figure will remain the same every year (assuming no work done)?
And for income, the figure I work out from my tax sheet (income minus costs)?
'Actually i just noticed that the t1135 form actually asks what the value of the property was during the year and at the end of the year, so wouldn't i have to put down the entire value rather than my share?
No, they want the cost of your share. For tax purposes your cost is your share of the market value on the day you moved to Canada converted at the exchange rate ruling on that day. Unless you do some major renovations the maximum cost and the year-end cost will be the same. If you never do any renovations it will be the same every year.
Just searched and came across this Q and A from last year which I don't remember seeing previously so just sharing again to confirm it.
So for the T1135, if the value of my UK house exceeded $100k when I moved to Canada - let's say $500k equivalent on the day I moved over - that is the figure I insert in Box 5 for both Max cost during Year and cost amount at end of year, assuming I carry out no renovations in the year? And this figure will remain the same every year (assuming no work done)?
And for income, the figure I work out from my tax sheet (income minus costs)?
Yes, it is still valid. The income will be the same as on your T776 rental schedule.
Feb 24th 2017, 10:12 pm
#3
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Thread Starter
Joined: Dec 2010
Location: Whitby, Ontario
Posts: 730
Re: Tax confirmation again t1135 😀
Thank you for taking time to confirm 😀
