If you hold foreign investments, a US brokerage account, cryptocurrency on a foreign exchange, or real estate outside Canada worth more than $100,000 CAD at any point during the year — you almost certainly need to file a T1135. Many Canadians don't realize this, and CRA's penalties for late or non-filing are steep.
What Is the T1135?
The T1135, or Foreign Income Verification Statement, is an annual disclosure form required by the Income Tax Act (section 233.3). It requires Canadian residents to report specified foreign property with a total cost exceeding $100,000 CAD at any point in the taxation year.
Note: this is a reporting requirement, not a new tax. You still report the income from foreign property on your T1 return. The T1135 is a separate disclosure of the property itself.
Who Must File T1135?
Canadian residents (individuals, corporations, and trusts) who at any point during the year held specified foreign property with a total cost exceeding $100,000 CAD.
The threshold is based on cost — not market value. If you invested $110,000 CAD in US stocks and they dropped to $80,000 by year-end, you still need to file because the original cost exceeded $100,000.
What Counts as “Specified Foreign Property”?
- Funds held in foreign bank accounts (e.g., a US bank account)
- Shares of foreign corporations (US stocks on Robinhood, Wealthsimple US stocks, etc.)
- Debt owed by a non-resident (foreign bonds, foreign government debt)
- Real property outside Canada (US rental properties, vacation homes)
- Interests in foreign trusts
- Cryptocurrency held on a foreign exchange (Coinbase, Kraken, Binance US)
- Foreign pension plans (may have additional reporting on T1)
Common Situations: Robinhood, Coinbase, US Rentals
Robinhood and US Brokerage Accounts
Robinhood, IBKR, Charles Schwab, TD Ameritrade, and other US brokerages are foreign accounts for Canadian tax purposes. If the total cost of your US-held securities at any point exceeded $100,000 CAD, you must file T1135. You also need to report US dividends on your T1 as foreign income (with foreign tax credit for the 15% US withholding).
Coinbase and Foreign Crypto Exchanges
Cryptocurrency held on a foreign exchange (Coinbase, Kraken, Binance US) is considered foreign property for T1135 purposes. CRA has confirmed this position. If the adjusted cost base of your crypto on foreign exchanges exceeded $100,000 CAD, T1135 applies. Crypto on Canadian exchanges (Wealthsimple Crypto, Newton) is domestic property.
US Rental Properties
Canadians owning rental properties in the US face a multi-layered filing obligation: T1135 in Canada (if cost > $100K), T1 foreign rental income reporting, potential US Form 1040-NR filing, and FIRPTA considerations on eventual sale. This is one of the most complex cross-border tax situations — professional advice is essential.
Penalties for Non-Filing
T1135 Penalties Are Serious
- • Late filing: $25/day up to $2,500 per year
- • Knowingly failing to file or gross negligence: $500/month up to 24 months ($12,000)
- • Where property wasn't reported on T1: additional penalty of 5% of the cost of unreported property
- • CRA has a voluntary disclosure program — but it requires coming forward before CRA contacts you
How We Help
We prepare T1135 filings for Canadians with US brokerage accounts, foreign real estate, and cryptocurrency on foreign exchanges. We also handle the associated T1 foreign income reporting, foreign tax credits, and where necessary, US filing obligations.
Need Help with T1135 or Cross-Border Tax?
We specialize in T1135, foreign income reporting, and cross-border tax situations for Canadians with US investments, rental properties, and crypto on foreign exchanges.