USD ETFs in Canadian brokerage and T1135

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Jonhello
Posts: 48
Joined: Sat Oct 05, 2013 1:28 am

USD ETFs in Canadian brokerage and T1135

Post by Jonhello »

When I eventually move to Canada, I will move my brokerage to a Canadian brokerage but still invest in USD ETFs as I am a US citizen. the account will be above 250,000 in CAD.

So will I need to do the long version of T1135 and also include my US bank account that I will keep open. Is this correct?
Jonhello
Posts: 48
Joined: Sat Oct 05, 2013 1:28 am

Re: USD ETFs in Canadian brokerage and T1135

Post by Jonhello »

Also... I understand that taxpayers get a first year exemption from filing their T1135 in the first year they become a tax resident of Canada. Is that correct?
nelsona
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Location: Nowhere, man

Re: USD ETFs in Canadian brokerage and T1135

Post by nelsona »

You can look up the rules on T1135 for what is included. But you DO need to produce a T1135 in your first year.
I am taking my usual break from this site until May. Always too many tax-form specific questions at this time of year...
nelsona non grata. Non pro. Search previous posts. Happy Browsing :D
Jonhello
Posts: 48
Joined: Sat Oct 05, 2013 1:28 am

Re: USD ETFs in Canadian brokerage and T1135

Post by Jonhello »

I was tinkering around in Simple Tax with hypotheticals and when I tried to put in T1135 for the first year, it stated "NEWCOMERS TO CANADA: You don't need to file a T1135 since you immigrated this year. Please remove this section from your return."

So I dug around in the rules at canada.ca and this is what they state:

"What is the reporting requirement for new immigrants? How is the cost amount determined for property that was owned at the time of immigration to Canada?
An individual does not have to file Form T1135 for the tax year in which he or she first became resident in Canada. For a new resident, the cost amount of foreign property is its fair market value at the time he or she first became resident in Canada. Use this fair market value in determining the new resident's Form T1135 filing requirement in future years."

It seems they may have made this exception recently.
nelsona
Posts: 17014
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: USD ETFs in Canadian brokerage and T1135

Post by nelsona »

Indeed. Thanks for the info.
I am taking my usual break from this site until May. Always too many tax-form specific questions at this time of year...
nelsona non grata. Non pro. Search previous posts. Happy Browsing :D
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