Hello,

I believe this topic has been discussed many times in the past. Often, I am left puzzled when related questions are asked to the accountants. I hope, there could be may folks from our region might have similar background and requirements.

Here is the CRA link that directs the taxpayer about reporting their foreign property.
http://www.cra-arc.gc.ca/E/pbg/tf/t1135/t1135-07e.pdf

According to the CRA directions above, if you hold properties whose combined values are beyond $100,000, you should declare

there are some exemptions though. Let us check the CRA example below.


Q. I own a condominium in Florida that has a cost amount of $120,000. Am I required to file Form T1135 if the property is:

(a) only for personal use?

(b) rented out for eight months of the year with a reasonable expectation of profit and kept for personal use the other four months?

(c) rented out year round with a reasonable expectation of profit?

A. If the property is personal use property (i.e., property owned by you that is used by you or someone related to you primarily for personal use and
enjoyment) you do not have to report the property on Form T1135.

As a result, in situation (a), you would not need to report the condominium since it is held primarily for personal use and enjoyment.

In situations (b) and (c), the property is an income-earning investment property that is not held primarily for personal use and enjoyment. As a
result, since the cost amount is more than $100,000, you have to file Form T1135.


Question #1
If you own a house in India where your parents live currently and let us say the property is currently valued at 130,000 CAD, you don't need to declare. Is that correct ?

Question #2
What about the interpretation on another scenario where the house in India is currently valued at 130,000 and another piece of empty land that cost you another $80,000. Would you still need to declare both the properties. I personally think No!!! because the house in India is currently used by parents and the empty land to build the property doesn't earn any income plus it is held for the use building your future home.


Thanks....

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