I tried searching for this information in the forum and am not finding any information, but I am puzzled that no one else is confused as I am :-)
I was (and still am) a U.S. citizen, and I also became a Canadian citizen a few years ago. I have been submitting T1135 for a while, but I cannot live with the doubt that I might have been doing something wrong all along.
In the Canadian tax form T1135 - Foreign Property Reporting form - for any given property, it asks for the "Maximum cost amount during the year". I presume this means tax year, and for today, let's talk about the tax year 2013. What happens if I bought a mutual fund in 2012 or even earlier - how will I determine the "maximum cost amount during 2013"? Cost was incurred in 2012 and not "during the tax year". Something seems wrong in the wording - if it is the cost that they want, it should be from whichever year the fund was bought. If it is the maximum amount they want for 2013, it need not be a cost amount - it might be just the maximum value of the fund in 2013.
Can someone please let me know what is meant by "cost amount" as opposed to value of fund for the tax year of 2013? And should I include even cash sitting around - I didn't think we should include this because we didn't buy cash (assuming I earned it in the U.S. while I worked there as a citizen, prior to moving to Canada).
T1135 - does a purchase prior to the tax year count?
Moderator: Mark T Serbinski CA CPA
"I cannot live with the doubt..."
Before you take your life, did you bother to read the form? There is a definition of "Cost amount" that I'll let you read for yourself.
And less melodramatics, please. It's all I can do not to jump off the roof. No need to send flowers.
Before you take your life, did you bother to read the form? There is a definition of "Cost amount" that I'll let you read for yourself.
And less melodramatics, please. It's all I can do not to jump off the roof. No need to send flowers.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
I was entering this information in a software package and hence did not read the original form from CRA. Nevertheless, I had read it in the past years and didn't find it clear at that time.
Now that I am reading this year's form, they seem to have made some changes. The first category - "Funds held outside Canada" - has a table that does not say "Maxiumum cost" like it is mentioned in the other tables. Now it says "Maximum funds held during the year". Makes sense now.
Interestingly, the form has a section under "Other Property" that seems to address shares in stocks and funds (mentions security dealers), and here "Maximum cost amount" is described differently - one of the options specifies we enter "0". But, I guess I will just go with the first category and report my stocks and mutual funds under "Funds held outside Canada"
-prince
Now that I am reading this year's form, they seem to have made some changes. The first category - "Funds held outside Canada" - has a table that does not say "Maxiumum cost" like it is mentioned in the other tables. Now it says "Maximum funds held during the year". Makes sense now.
Interestingly, the form has a section under "Other Property" that seems to address shares in stocks and funds (mentions security dealers), and here "Maximum cost amount" is described differently - one of the options specifies we enter "0". But, I guess I will just go with the first category and report my stocks and mutual funds under "Funds held outside Canada"
-prince