T1135 Foreign Income Verification Statement
Who files form T1135, what counts toward the $100,000 cost test, simplified vs detailed reporting, penalties and how to fix missed years.
The short version
- Form T1135 reports foreign property. You file it if the total cost of your specified foreign property was more than $100,000 at any time in the year.
- Cost, not market value, in Canadian dollars. U.S. shares held at a Canadian broker count. Foreign property in an RRSP or TFSA doesn't.
- Under $250,000 in total you tick boxes (Part A). Above it you list each property (Part B).
- Due with your return, usually April 30. Late is $25 a day, up to $2,500 a year, even if you owe no tax at all.
- Not filing knowingly can cost $500 a month, and CRA gets three extra years to reassess the income from that property.
T1135 Foreign Income Verification Statement
The T1135 is the form that punishes people for not knowing about it. You can report every dollar of foreign income, pay every dollar of tax, and still be fined $2,500 a year because you didn't also tick some boxes saying where the money sits. CRA calls this verification. Investors call it something else. It takes ten minutes once you know what counts, so here's what counts.
What Counts Toward the $100,000
| Counts (specified foreign property) | Doesn't count |
|---|---|
| U.S. and other foreign shares, even held at a Canadian broker | Anything inside an RRSP, RRIF, TFSA, RESP or FHSA |
| U.S.-listed ETFs and foreign mutual funds | Canadian-listed ETFs and mutual funds, even if they hold foreign stocks |
| Bank accounts and deposits outside Canada | A foreign home or cottage used mainly by you (personal-use property) |
| A rental property outside Canada | Property used only in an active business |
| Bonds and loans owed by non-residents; interests in foreign trusts | Shares of a foreign affiliate (those go on a different form, T1134) |
| Foreign life insurance policies; gold or other property held outside Canada | Your first year as a resident of Canada |
Example: $60,000 (cost) of U.S. stocks at a Canadian discount broker plus a $45,000 account at a bank in the U.K. That's $105,000, so you file, using the simplified Part A. Swap the U.S. stocks for a Canadian-listed U.S. index ETF and you're at $45,000 and done. More on cost on stock investment taxes.
Not sure if your accounts add up to $100,000?
List what you own outside registered accounts: where it is held, what it is and what you paid. The assistant tells you what counts, the total cost in Canadian dollars, and which part of the T1135 you need.
Simplified or Detailed?
- $100,000 to $250,000 at any time in the year: Part A. Tick the types of property you held, the countries, and the income and gains in total.
- Over $250,000 at any time: Part B. Each category in detail: country, maximum cost during the year, cost at year-end, income and gains. Foreign shares held at a Canadian broker or trust company can be reported in total, country by country, instead of share by share.
- Joint accounts: each owner looks at their own share. A couple with a $150,000 joint account abroad has $75,000 each, so neither files for that account alone.
- Currency: cost in Canadian dollars at the exchange rate when you bought, not today's.
Penalties, Plainly
| Situation | Penalty |
|---|---|
| Filed late | $25 a day, minimum $100, maximum $2,500 per year |
| Knowingly or carelessly not filed | $500 a month, up to 24 months ($12,000) |
| Not filed after CRA demanded it | $1,000 a month, up to 24 months ($24,000) |
| Still not filed after 24 months | An extra 5% of the cost of the property |
| False statement or omission | The greater of $24,000 and 5% of the property's cost |
On top of that, if the T1135 or the foreign income is missing, CRA can reassess that income for three more years than usual. Interest runs on penalties too; see penalties and interest.
Missed Some Years?
- File the missing T1135s now, before CRA asks. Penalties are far lower when you come forward.
- Check the income too. If foreign dividends or interest were also left off, you have a return problem, not just a form problem; see changing a tax return.
- Consider a voluntary disclosure for several years or large amounts; see voluntary disclosures.
- Ask for relief if illness or another real reason caused it; see taxpayer relief.
Tax already paid abroad on the income is credited through the foreign tax credit, and the bigger picture is on investment taxes and taxes for newcomers. New arrivals use the value on their arrival date as cost; see property you owned before moving.
T1135 Questions
Who has to file form T1135?
Canadian residents whose specified foreign property cost more than $100,000 in total at any time in the year. Individuals do not file in the year they first become residents of Canada.
Do U.S. stocks in a Canadian brokerage account count for T1135?
Yes. Shares of non-resident corporations are specified foreign property wherever they are held, unless they are inside a registered account such as an RRSP or TFSA.
Is the $100,000 T1135 threshold based on market value?
No. It is based on cost, in Canadian dollars, for all your specified foreign property combined, at any time in the year.
What is the penalty for filing T1135 late?
$25 a day for up to 100 days, so a minimum of $100 and a maximum of $2,500 per year. Larger penalties apply if the failure was knowing or careless, or if CRA demanded the form.
Does a Canadian-listed ETF holding U.S. stocks count for T1135?
No. Units of a Canadian mutual fund or ETF are Canadian property, even when the fund invests abroad. A U.S.-listed ETF does count.
Sources: CRA, Questions and answers about Form T1135; Table of penalties. Checked October 2026. Whether cryptocurrency held on a foreign exchange is specified foreign property depends on the facts and CRA's guidance is limited; we are not certain, so get advice if it pushes you over $100,000. The joint-account example assumes each owner's share reflects what they paid in.
Last reviewed October 5, 2026 against CRA and Government of Canada sources. How we check our facts.