# Form T1135



## jrsaballa (Nov 22, 2015)

Stocks Related.

If I had more than $100,000, bought and sold, do I have to fill out this form?

Are there instructions anywhere on how to fill it.


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## Numbersman61 (Jan 26, 2015)

jrsaballa said:


> Stocks Related.
> 
> If I had more than $100,000, bought and sold, do I have to fill out this form?
> 
> Are there instructions anywhere on how to fill it.


http://www.cra-arc.gc.ca/tx/nnrsdnts/cmmn/frgn/1135_fq-eng.html


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## My Own Advisor (Sep 24, 2012)

"If I had more than $100,000, bought and sold, do I have to fill out this form?"

In taxable account, yes. If inside RRSP or TFSA, no.


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## lost in space (Aug 31, 2015)

Ok dumb question but I'm assuming this form is if you hold money outside of Canada or?


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## scorpion_ca (Nov 3, 2014)

After reading the above posts, now my understanding is that if someone buy VUN or XEF in their non-reg account and the ACB is more than $100k, they will have to fill out T1135 form. Is this correct?


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## kcowan (Jul 1, 2010)

Yes


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## scorpion_ca (Nov 3, 2014)

I just browsed the cra link and found that - 

_35. Does specified foreign property held in a Canadian mutual fund trust have to be reported on Form T1135?

A Canadian mutual fund trust (as defined in the Income Tax Act) is excluded from the definition of “specified Canadian entity,” so it does not have to file Form T1135. Also, the investor does not have to report their investment in a Canadian mutual fund trust because it is not a “specified foreign property.”

The same applies to Canadian mutual fund corporations (as defined in the Income Tax Act).
_

VUN & XEF are Canadian ETFs. So, I don't need to fill out T1135.


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## GoldStone (Mar 6, 2011)

^ I am not convinced about VUN and XEF. 

Canadian-based ETFs are structured to qualify as mutual funds under the Income Tax Act. Canadian-based mutual funds are explicitly excluded from the list of Specified Foreign Property.

EDIT: I responded to kcowan.


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## My Own Advisor (Sep 24, 2012)

Based on my dealings with CRA this is a taxable account or foreign income issue, not a Canadian registered account issue (ie not an issue for RRSP, TFSA, RESP, etc).


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## My Own Advisor (Sep 24, 2012)

Further...it is my understanding Canadian mutual funds or ETFs that own foreign content do not apply to this reporting requirement.


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## heyjude (May 16, 2009)

My Own Advisor said:


> Further...it is my understanding Canadian mutual funds or ETFs that own foreign content do not apply to this reporting requirement.


That's what my accountant said.


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## AltaRed (Jun 8, 2009)

My Own Advisor said:


> Further...it is my understanding Canadian mutual funds or ETFs that own foreign content do not apply to this reporting requirement.


That is correct. Anything inside a Canadian domiciled corp/trust such as a mutual fund or ETF does not count as foreign property even if the ETF/fund contains only US stocks. And as already said, neither does anything in a TFSA or RRSP (perhaps other registered accounts as well).

To go back to the OP's question though, if foreign content exceeded $100k (CAD equivalent - annual forex rate for USD for 2015 is 1.27871080)) at any time during 2015, the form has to be filled out. That said, I believe the form instructions also say for foreign securities in a Canadian brokerage type account, i.e. Category 7, month end numbers are good enough to use on the form.


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## OnlyMyOpinion (Sep 1, 2013)

The simplified reporting method (Part A) for amounts over $100k Cdn but less than $250k Cdn only asks for type of property, country, income, and gain(loss) from any disposition. Part B of the form and the Category 7 details are not required and cannot even be filled-in in the CRA's fillable form.

The simplified method simply reinforces the stupidity of T1135 and the question of why the h#ll the form is required when the above amounts are captured by brokerage tax slips and Schedule 3 of your income tax.


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## kcowan (Jul 1, 2010)

I file whenever my ACB is over $100k Cdn for the year. It is no big deal and the penalties are so severe that I prefer to be safe than to challenge the bureaucracy!


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