T1135 Foreign Income Verification Statement (T1)

Updated: 2023-02-28

When your client confirms they have foreign property worth more than $100,000, you must complete the T1135 for the client.

Review messages and transmission functions for the T1135 form appear when you answer Yes to the foreign property question in the Filing section of the Info worksheet.

Screen Capture: Foreign Property Question on Info WS

Note: The CRA requires that the full social insurance number (SIN) or business number (BN) appear on the T1135 when filing a paper copy. TaxCycle will ignore the print option to mask these numbers unless the form was already electronically filed. Please use caution when sending this form to your clients in PDF format.

T1135 Manager

At the top of the T1135, the T1135 Manager allows for splitting and sharing of foreign investments between spouses, while retaining the applied foreign exchange rates.

When entering the amounts in the table, choose a reporting method. If you choose not to enter amounts in the T1135 Manager table, you may still complete Part A manually using the simplified reporting method.

  1. Select Simplified to use the simplified reporting method and complete Part A of the form. With this option, you can enter the details in the T1135 Manager section and TaxCycle will transfer those details to Part A, providing the client is eligible for the simplified reporting method (if the total cost of all specified foreign property held at any time during the year exceeded $100,000, but was less than $250,000).
  2. Select Detailed to use the detailed reporting method and complete Part B of the form. If the total maximum cost of all specified foreign property is equal to or exceeds $250,000, TaxCycle automatically completes the appropriate table in Part B.
  3. Answer Yes to carry forward the names/descriptions and countries to the following year.
  4. Choose the Type of property in the first column to transfer the detail to the appropriate table within Part B.
  5. Enter the Country code for the foreign property.
  6. Enter the percent of Spouse share to share the details with the T1135 in the spouse’s return. All rows in the table are shared between the principal taxpayer and spouse. You can edit details in either return. However, amounts will only transfer to Part A or Part B if you enter a percent in the Spouse share column.
  7. Enter the Maximum in the year for each property. Refer to the footnotes to find out whether to enter the funds held, cost amount or fair market value for the type of property.
  8. Enter the Amount at year-end for each property. Refer to the footnotes to find out whether to enter the funds held, cost amount or fair market value for the type of property.
  9. Enter Gross income (loss), Capital received or Gain (loss) on disposition. Note that these fields will change from editable (black text) to non-edit (green text) depending on the type of property selected in the first column.
  10. Enter the applicable Exchange rate for each row and column. Use the Exchange Rate Tool to find and copy the exchange rate to the field. TaxCycle will calculate the amounts to report in Canadian dollars.

Screen Capture: T1135 Manager