Do I need a T1135 if my foreign investments are with a Canadian broker?

Arsen Accounting Services · T1 guide · Sources checked October 29, 2026

Possibly. Keeping foreign investments with a Canadian broker does not automatically remove T1135 reporting. Canadian residents generally need this information return when the combined cost of specified foreign property exceeds C$100,000 at any time in the year, subject to the applicable exceptions. CRA: Foreign Income Verification Statement CRA: T1135 questions and answers

Look at the investments, not just the account address

Shares of non-resident corporations can be specified foreign property even when held in Canada. Foreign bank deposits and foreign income-producing real estate may also be relevant. Gather holdings across all institutions instead of testing each account against the threshold separately. CRA: Foreign Income Verification Statement

A useful starting list has one row per account or property, identifying its owner, location, type, currency and how it was acquired. Mark which accounts are registered. This helps your preparer decide what belongs in the reporting calculation.

The threshold generally uses cost, not today’s value

CRA’s threshold is based on cost amount, generally adjusted cost base, rather than current market value. A statement showing a high December balance may not answer whether you crossed the threshold during the year. Conversely, selling assets before December does not erase an earlier reporting obligation. CRA: T1135 questions and answers

Keep acquisition records and Canadian-dollar calculations. If an asset came through a gift, inheritance, immigration or a reorganization, flag that history because the relevant tax cost may require separate work. Do not substitute the current sale price for missing historical information.

Some familiar holdings are excluded

CRA excludes specified foreign property held in an RRSP or TFSA. An investment in a Canadian mutual fund trust or Canadian mutual fund corporation is also treated differently from directly owning foreign securities. Personal-use property is excluded from specified foreign property. Check the legal investment and actual use rather than relying on a fund’s name or the currency shown. CRA: T1135 questions and answers CRA: Foreign Income Verification Statement

T1135 is separate from reporting income

The C$100,000 threshold is not a tax-free allowance for foreign income. Canadian residents must still report taxable foreign investment income even when no T1135 is required. Foreign interest and dividends are examples of amounts addressed in CRA’s investment-income guidance. CRA: T1135 questions and answers CRA: Interest and foreign investment income

If your foreign income already appears on the T1, check the separate information-return question as well. Neither a broker statement nor the income entry alone confirms that the T1135 requirement has been satisfied.

Prepare these records

• Annual and monthly statements for Canadian and foreign accounts.
• Acquisition costs, transaction dates and relevant currency records.
• Foreign rental-property purchase information and use details.
• Income, gains and any foreign tax paid.
• Earlier T1135 filings and dates you became or ceased to be a Canadian tax resident.

Common questions

Is a Canadian brokerage account automatically exempt?

No. CRA provides a reporting category for specified foreign property held with qualifying Canadian dealers or trust companies. CRA: T1135 questions and answers

What if I may have missed the form in earlier years?

Bring the affected years forward for review. Confirm the requirement and correction options rather than assuming that reporting the income settled the information-return obligation.

Clarify the foreign-reporting scope

Arsen Accounting offers foreign-income and foreign-asset reporting. Mention your residency history and the types of assets. Simplified and detailed T1135 fees are listed separately so the appropriate scope can be confirmed.

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