Declaring foreign property - Page 2
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Thread: Declaring foreign property

  1. #11
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    From your initial post, the question on your tax return is
    '"Did you own or hold foreign property at any time in the year with a total cost of more than CAN$100,000?”
    The question states cost, not value. CRA website states cost as well.


  2. #12
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    Interesting, I assumed they meant value of the property. I will look into what they mean by COST on the property. Does it mean how much money I spend to maintain the property? Sorry!

  3. #13
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    Turbotax, which is a credible resource for tax info, seems to indicate that CRA means value

    https://turbotax.intuit.ca/tax-resou...tax-return.jsp

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  5. #14
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    you are correct!

    9. Is the $100,000 threshold based on the fair market value of the property?
    No, it is based on the cost amount. The cost amount is defined in subsection 248(1) of the Income Tax Act and generally is the adjusted cost base and not the fair market value.

  6. #15
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    Quote Originally Posted by jazzman View Post
    you are correct!

    9. Is the $100,000 threshold based on the fair market value of the property?
    No, it is based on the cost amount. The cost amount is defined in subsection 248(1) of the Income Tax Act and generally is the adjusted cost base and not the fair market value.
    Note the key words... Adjusted Cost Base. That is a defined term and is based on original cost (including closing costs) and any capital improvements made that can legally be added to the Cost Base for tax purposes.

    Analogy: Someone buys VTI ETF, 2000 units @ $50 CAD equivalent (not USD) including commission = $100kCAD. Over time, DRIPs add units such that X more units costing a total of $23kCAD equivalent. Adjusted cost base of that asset is now $123k CAD equivalent.... based on the forex in place at the time of purchase.

  7. #16
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    Dec 2014
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    good point, I am thinking, perhaps, I should just declare the damn property and not worry about it. Better safe than sorry.


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