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How do I navigate my first ever tax filing in Canada and complete the T1135 form accurately?

Form T1135 must be filed if you own specified foreign property with a cost amount over $100,000.

New Canadian residents are exempt from filing T1135 in their first year, but this does not apply to previous tax residents.

For the 2017 and later tax years, individuals can file Form T1135 electronically, while corporations can EFILE for 2014 and later years.

Part A of Form T1135 is for simpler cases, while Part B is for more complex foreign asset situations.

The deadline for filing Form T1135 is April 30, the same as the income tax return.

You must report the maximum cost amount during the year and the cost amount at year-end for Categories 2 to 6 in Part B.

Failing to file a T1135 form on time can result in hefty fines, late filing penalties, and even additional penalties for knowingly not filing.

The T1135 filing requirement is based on the total Canadian dollar cost of foreign properties, including shares of foreign corporations, real estate, and certain debt obligations.

For Part B of the T1135, you need to specify the type of foreign property you own, such as shares of foreign corporations, real estate, or other specified foreign property.

If you have foreign property that does not fit into any of the categories listed in the T1135 form, you can provide a brief explanation of the property in Part B.

The CRA can audit your T1135 form up to three years after the date you file your income tax return.

If you have foreign property that you disposed of or acquired during the tax year, you need to report the dispositions or acquisitions even if the property was held for less than a year.

In some cases, you may not need to report certain foreign property that you own as a single unit if the total cost of each property is less than $100,000.

The T1135 form is a disclosure form, which means you need to disclose the foreign property you own, but you do not need to report the income or gains from those properties on the T1135.

If you own foreign property in a trust or corporation, you need to file a separate T1135 form for each trust or corporation.

The CRA has created a robust "Questions and answers about Form T1135" web page to help tax filers.

Keeping good records of all foreign holdings will reduce time, frustration, and potential costs of completing the T1135 form.

Taxpayers with specified foreign property that has a total cost of $250,000 or more at any time during the year must complete Part B of the T1135.

Failing to file a T1135 form correctly can result in the CRA requesting additional information, reassessing your tax return, or imposing penalties.

For high-net-worth individuals, the T1135 form is a concern, and expert tax guidance is recommended.

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