Threshold of Value of US Property Reportable on T1135

[canuckinus]

Hi All,
I moved to US in March 2008. I am preparing my first Canadian Return as a US Resident .

Line 226 , in the Canadian T1 form, asks:

" Did you own or hold foreign property at any time in 2008 with a total cost of more than CAN$100,000? If yes, attach a completed Form T1135."

I am having trouble figuring out if I have to attach the T1135 declaring my US funds.


Here are my US Holdings:

401 K Retirement Plan: USD 25K
Chequing/Savings Account: USD 15K
-----------------------------------------
Total USD 40K.


Since this amount is less than CAD $100K, do I still need to attach the T1135? What is the trigger /threshold for making a US asset reportable on T1135?


I am a complete newbie in these cross country tax matters,which sound so intimidating. I would deeply appreciate any help in this regard.

Regards

CanuckInUS

[nelsona]

If you read the form, it states that you need to have $100K in specified foreign assets. You don't.

Moreover, as the form also explains, returement accounts are not reported.

So T1135 doesn't apply to you, nor do you check the box on your T1.

Now, moving on, I trust you have thoroughly read the emigrants guide from CRA and are complying with all uts requirements?

And for US, you are filing a FULL year 1040 reporting all world income for the year, and then using 1116 or 2555 on your Cdn income/tax? And filing 8891 for any RRSPs you have, and the TD90 form for your CDn accounts?

[danny]

I think this form is not just for departing residents but anyone who is resident in Canada has to file if they do have assets above 100,000 CAD. Correct ?

[nelsona]

It has always been for Cdn residents. Returning residents are residents. Departing residents are residents.

Only those who are non-residents for the entire calendar year are exempt from any requirments of this form.

[danny]

makes sense. Thanks