Questions regarding T1135 form

[Mimo]

Hi, US citizen who became canadian residence in september 2020. I have foreign properties (rental) over 250k.
For 2020 taxes, I didn't file T1135 (new residents don't have to file it first year resident).
I'm filing it this year and I have a few questions please.
. For taxation year i'm filling this form, should be september 2020 (date arrival) to dec 2020, or should it be jan 2021 to dec 2021?
I was able to get the property value for when I moved to canada (my realtor in the US provided me with value based on market at this time).
. Can i use this value as both maximum cost amount during the year and cost amount at year end? or I should do another market value at end of year?
. since property isn't sold, should i leave capital loss/gain blank (or zero)?
. if reporting from sept 2020-dec 2020 then gross income comes from my 2020 US tax returns, and if from jan 2021-dec 2021, it would come from my 2021 US tax, correct?

Thanks in advance.

[nelsona]

It is for the same "year" as your general tax return. Jan-Dec 2021

The gross income would be the same as on your 2021 CDN return, not US. Remember that as Cdn resident you must report WORLD income, including rental income from your US properties.
I trust you did this for your partial return for 2020.

"Cost" is not the same as income. Your properties COST has presumably not changed since you moved, unless you have made renovations that would change the cost basis. market price changes since you moved are not reported on this form. There will be no proceeds to report until you sell, thus no gains/losses until that time.

[Mimo]

Thank you nelsona
I don't work yet in Canada so my only income is from the rental in the US
In this case, gross income for the rental properties is the yearly rental value multiplied with the US conversion rate, correct.
So am i still good using the market analysis back in september 2020 for 2021 T1135 since september was when I became resident?

Another question, sorry
how about reporting funds? I can provide the maximum funds held during the year, and the funds held at year end...but what's the gross income under this category? is it any income generated from the funds in the financial institution?

will i need to use different conversion rates for maximum funds vs year end (average rate vs december rate) or average rate is still fine for both?

[nelsona]

Well, one typically reports NET income on one;s tax return. You are supposed to file a income/expense statement on your tax return. You need to file a Cdn tax return.

Income is what you report on your tax return. It should match your T1165 and vice versa.

[Mimo]

Makes sense!
Thanks.

One last question sorry
If I share the rental property with a family member at 50%, do I then take the cost of the property at market value then divide by 2 for my share?

[nelsona]

You report your shere of the value and the income on your tax return.

[Mimo]

Another few questions please.
I’ll use numbers to simplify:
I had about $140k in us bank account (including certificate of deposit) in 2021.
I went for a vacation in the us and ended up spending 20k from these funds. Now my year end cost is $120k. I made $25 interest from the cds.
When I report on T1135, my max cost is 140k, my year is 120k. How about income (loss)? Should It be the interest (which is $25)?
When I convert the #s do I use the average for max amount and the monthly rate for the year end? Or both use the average?

Thanks

[nelsona]

I think I'll lkeave you to figure this out. I don't do peoples taxes.