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Foreign property reporting

4 Feb

Foreign property reporting

Canadian resident individuals who held certain property outside Canada with a total cost of more than $100,000 CAD at any time during the tax year are subject to certain disclosure requirements to the Canada Revenue Agency (CRA).  Non-compliance with this reporting requirement results in severe penalties. To determine whether you are subject to the reporting rule, please read and consider each of the following points carefully.

If you owned any of the following property at any time during 2016, you may be subject to the foreign property reporting rule, and may need to provide additional information to complete forms to submit to the CRA.

Funds or intangible property (patents, copyrights, etc.) situated, deposited or held outside Canada
Tangible property situated outside of Canada
A share of the capital stock of a non-resident corporation held by the taxpayer or by an agent on behalf of the taxpayer
An interest in a non-resident trust that was acquired for consideration, other than an interest in a non-resident trust that is a foreign affiliate for the purposes of section 233.4
An interest in a partnership that holds a Specified Foreign Property unless the partnership is required to file a T1135
An interest in, or right with respect to, an entity that is a non-resident
A property that is convertible into, exchangeable for, or confers a right to acquire a property that is Specified Foreign Property
A debt owed by a non-resident, including government and corporate bonds, debentures, mortgages, and notes receivable
An interest in a foreign insurance policy
Precious metals, gold certificates, and futures contracts held outside Canada

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