# T1135 form for 2013 taxation year



## Video_Frank (Aug 2, 2013)

I'm starting to fill out this year's taxes and the new T1135 is stumping me. Specifically, my spouse and I hold > $100,000.00 worth of VTI / VXUS in a non-registered account with BMoIL. We receive T5s from BMoIL with info in Box 15 and Box 16. These amounts are entered into the tax forms as "T5 Investment Income". So far, so good.

The T1135 form, though, says you need to report any foreign income received. But some websites, such as this one, state



> Where the taxpayer has received, or will receive, a T3 or T5 from a Canadian issuer for all of the income earned in respect of a specified foreign property for the particular tax year, that specified foreign property may be excluded from the Form T1135 reporting requirement for that tax year.


Does anyone have any suggestions as to how to proceed? Thanks in advance.


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## OptsyEagle (Nov 29, 2009)

Ignore the website, report the income.

The purpose of the form is to see if people, who have foreign assets, are reporting the income from it. In that regard, put down every number that you will be putting the other lines of the tax return. I am sure the computer has some base rate that spits out the return for a human to look at. In other words, if the income is less then some very low rate (eg: 0.01% of assets) they may want a human to look closer at it. This is what you want to avoid, so put down everything that has already been put on the return. 

Just my opinion.


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## kcowan (Jul 1, 2010)

I intend to file it even though it says I am not eligible to file. Anytime I can load up the CRA for the cost of a stamp, I will. I have over $100k in US and it is all reported via T3/5 slips, but the form says I need to file.


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## KRIS_KROSS (Jan 28, 2014)

Video_Frank said:


> Specifically, my spouse and I hold > $100,000.00 worth of VTI / VXUS in a non-registered account with BMoIL. We receive T5s from BMoIL with info in Box 15 and Box 16. These amounts are entered into the tax forms as "T5 Investment Income". So far, so good.


The CRA just updated the reporting requirements for T1135's a few days ago to make it less cumbersome for the 2013 transition year.

In your case, described above, you only have 2 securities owned in 1 account, which both report all of the income earned on a T5 slip. *Thus, you are not required to submit a T1135 showing these securities*. This should be the same reporting for future years even once the 2013 transitional year is over, as long as your securities report income on a T-slip.

If you had securities that did not report income (ie. only held for CG, and were not sold during the year), you would be required to report those on a T1135. Under the 2013 transitional rules, you could just report the combined value of all securities held in the same account. In future years, you will have to report the individual security values that make up the account (unless they report all of their income on a T-slip, then you are exempt from reporting that specific security on the T1135).

Also, note that CRA has extended the deadline to file T1135 forms for the 2013 taxation year until July 31, 2014.


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## Video_Frank (Aug 2, 2013)

Thanks to everyone so far,

How would I report stocks that are held in the US that I do not receive a T5 for? My wife owns under $100k worth of IBM stocks, held by Computershare in the US. We filled out a basic T1135 last year because the IBM shares + the VTI / VXUS acquired in 2012 exceeded the $100k mark. Last year the form was fairly basic and didn't ask for the fund names, etc. This year's is more specific - "maximum cost amount during the year", etc. I'm thinking I should get an accountant to look it over. The penalties for misreporting seem quite severe.


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## Guban (Jul 5, 2011)

It is not the value of the IBM shares that matters. It is the cost. If the total cost of all of your wife's foreign shares is over the $100 k mark, file T1135. Show that she owns the IBM shares in part 2 if she is over $100k.


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## GOB (Feb 15, 2011)

How are call and put options dealt with? Are puts considered negative equity?


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## avrex (Nov 14, 2010)

@GOB, I have struggled with the question of options as well.
There doesn't seem to be any information out there on how options are treated for the T1135.
Even tax experts, can't provide a clear answer (T1135 Foreign Reporting - Blunt Bean Counter)

In my opinion, you would *report the value of the option*, not the value of the underlying.

For example, you buy one $200 SPY put at $7.
This means that you have $700 of foreign property. You *do not* have $20,000 of negative equity.

Once again, just my opinion.


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