As we enter tax time we thought we'd share some helpful information with you.
There have been some changes on how Canadians are to report foreign income. If you held “specified foreign property” with a cost in excess of C$100,000 at any time during the taxation year, you are required to report to the Canada Revenue Agency (CRA), for the year, certain information related to your foreign property on Form T1135 – Foreign Income Verification Statement.
These foreign reporting rules do not impose any additional taxes but require only the disclosure of information about the ownership of foreign property.
The CRA has implemented changes to Form T1135 for the 2014 and later tax years. The changes allow you to report aggregate amounts for specified foreign property held in accounts with registered securities dealers and Canadian trust companies rather than providing the details of each such property. The cost of not doing the required reporting on time or making errors on your T1135 can be quite significant.
We've also included some great information on planning how to sell or leave your cottage to loved ones.
As always please let us know if you have any questions.
The Perron Group
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