T1135 and Term life insurance

[Jonhello]

I recently became a Canadian resident for tax purposes. I have a US TERM life insurance policy. Do I need to file it on the T1135 as it is only a term policy?

[Jonhello]

Also from what I understand, US$ funds in a Canadian financial institution (such as Questrade) does not need to be included in the T1135. Is that correct?

[Jonhello]

Jonhello wrote:
> Also from what I understand, US$ funds in a Canadian financial institution
> (such as Questrade) does not need to be included in the T1135. Is that
> correct?

I found out this was true. I do need to include my US ETFs from Questrade in the T1135.

[Jonhello]

Jonhello wrote:
> I recently became a Canadian resident for tax purposes. I have a US TERM life insurance policy. Do I need to file it on the T1135 as it is only a term policy?

I have searched far and wide and so far I haven't found a answer to this question. Nelson, would you know the answer to this?

I would assume it wouldn't be included as the ACB would be zero as it has no value and cannot be cashed. Rather term insurance is a promise to give my beneficiary a certain amount in the case that I die before a certain date (as long as continue paying my premiums). This term life insurance is personal not from my employer.

[Canadian Newbie]

Could you elaborate on your determination that your accounts in Questrade which is supposedly Canadian based are required to be disclosed on the T1135?

[Jonhello]

Sorry. i didn't make it clear that the ETFs are from the New York Stock Exchange and in USD.

[Canadian Newbie]

Jonhello wrote:
> Jonhello wrote:
> > I recently became a Canadian resident for tax purposes. I have a US TERM life
> insurance policy. Do I need to file it on the T1135 as it is only a term policy?
>
> I have searched far and wide and so far I haven't found a answer to this question.
> Nelson, would you know the answer to this?
>
> I would assume it wouldn't be included as the ACB would be zero as it has no value
> and cannot be cashed. Rather term insurance is a promise to give my beneficiary a
> certain amount in the case that I die before a certain date (as long as continue
> paying my premiums). This term life insurance is personal not from my employer.
I don't think you can assume that the ACB would be zero when you look at 148(9) of the Income Tax Act. From what I get from that section, premium payments would increase the ACB.
Hopefully, someone with direct knowledge will provide the answer.

[LJBill]

Jonhello wrote:
> I recently became a Canadian resident for tax purposes. I have a US TERM
> life insurance policy. Do I need to file it on the T1135 as it is only a
> term policy?

While on the phone with CRA some week back I actually asked them about this. Listing a TERM life insurance policy is not required. Only those other life products that have a cash value, whole life, etc.

I haven't listed my US Term life insurance policy for either 2021 or 2022.

[Jonhello]

LJBill wrote:
> Jonhello wrote:
> > I recently became a Canadian resident for tax purposes. I have a US TERM
> > life insurance policy. Do I need to file it on the T1135 as it is only a
> > term policy?
>
> While on the phone with CRA some week back I actually asked them about this. Listing
> a TERM life insurance policy is not required. Only those other life products that
> have a cash value, whole life, etc.
>
> I haven't listed my US Term life insurance policy for either 2021 or 2022.

Thank you,LJBill