Cross-Border Tax · Guide
T1135: who has to file, deadlines, and penalties
You must file Form T1135 with the CRA if the total cost of your "specified foreign property" was more than $100,000 CAD at any time in the year. It is due with your income tax return, and filing late costs $25 per day (minimum $100, maximum $2,500 per year) — even if you owe no tax on the property itself.
By the AnalytIQ Accounting team · Last reviewed: August 12, 2026
What counts as specified foreign property
Specified foreign property includes funds in foreign bank accounts, shares of foreign corporations (including US stocks held in Canadian non-registered brokerage accounts), foreign rental real estate, and debts owed by non-residents. It does not include property inside RRSPs, RRIFs, or TFSAs, US property used mainly for personal use (like a vacation home you don't rent out), or shares held through Canadian mutual funds.
The $100,000 threshold is about cost, not value
The test is the total cost amount (usually what you paid, in Canadian dollars) of all specified foreign property combined — not today's market value, and not per property. If your combined cost crossed $100,000 CAD at any point in the year, even briefly, you file for that year.
Two ways to report
If your total cost was under $250,000 CAD all year, you can use the simplified method — tick boxes by category and report totals. Over $250,000, the detailed method applies: each property, its country, its highest cost in the year, and the income it produced.
Deadlines and penalties
T1135 is due the same day as your income tax return. The late-filing penalty is $25 per day to a maximum of $2,500 per year, and it applies per year missed — several missed years multiply the exposure. Higher penalties exist for knowing or grossly negligent failures.
Missed a year? Fix it before the CRA asks
The CRA's Voluntary Disclosures Program can reduce or eliminate penalties for unfiled T1135s — but only if you come forward before the CRA contacts you. This is one of the most common cross-border cleanups we handle: we file the missed forms, prepare the disclosure, and get you current.
Rules at a glance · US Real Estate, Investments and Trading
Not sure which applies to you? Get a free proposal or book 15 minutes.
What we take off your plate
Cross-border tax for Canadians with US property or investments, handled.
- FIRPTA withholding, Form 8288-B and the 1040-NR filed as one file
- The 871(d) election made every year so US rental tax lands on net income
- Canadian and US returns prepared by one team
- Treaty positions and foreign tax credits lined up
- FBAR and T1135 foreign reporting
- ITIN applications certified in-house
Mistakes we fix
Three things that go wrong for Canadians with US property or investments.
- Buying US rental property through an LLC and creating a Canada-US tax mismatch
- Missing the 871(d) election and paying 30% tax on gross US rental income instead of net
- Leaving US stocks in a Canadian brokerage off the T1135 because the account itself is Canadian
Recognise one? Book a call and we will tell you what it is costing you.
How we can help · US Real Estate, Investments and Trading
Where we do the work.
Fixed fees, quoted after a short discovery call. Canadian and US filings under one roof.
Free proposal
A fixed fee for your cross-border tax work, in writing.
- Tell us about your business. The form takes about a minute.
- A short discovery call. Fifteen minutes to confirm what you need.
- A fixed fee in writing. We reply within one business day. No hourly surprises.
- Canadian and US filings under one roof
- Cloud-first: QuickBooks Online, Dext, Wagepoint
- Brampton, Ontario, with clients across Canada and the US
Common questions.
Do US stocks in my Canadian brokerage account count?
Yes, if the account is non-registered — US shares are specified foreign property even when held at a Canadian broker. Inside an RRSP or TFSA they do not count.
Does my Florida vacation home count?
Not if it is mainly for personal use and not rented out. If you rent it, it becomes specified foreign property.
Is T1135 the same as FBAR?
No — T1135 is Canada-side (CRA). FBAR is the US-side equivalent for US persons. Cross-border families often need both; we prepare them together so they agree.
Related reading
Get it filed right.
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