Foreign income T1135 | Income tax filing | Discussion forum

If your brokerage sent you a T1135, then it is likely because you have crossed the threshold of $100k in CAD equivalent cost base of US domiciled investments, or the $250k threshold. The penalties are extremely severe for not filing when you are supposed too. https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/information-been-moved/foreign-reporting/form-t1135-reporting-2015-later-tax-years.html and also
https://www.taxtips.ca/filing/foreign-asset-reporting.htm

Not enough information to address the discrepancy. Your brokerage would have most likely sent you the T1135 converted into CAD based on a forex rate of some kind (that is normally disclosed). That would explain part of the difference. It may be that your brokerage actually did not use the right ACB (Cost Base) in which to calculate the capital gains. How does that reconcile with the T5008 data for whatever US domiciled investments you sold in 2020.

Bud said
What do you mean not filing? At income tax time? One has to file when investment made? Does it have anything to do with w-8ben form?  

The Foreign Income Verification Statement (T1135) is due by April 30th and is incorporated into tax software such that one can complete it at the same time as one's T1 tax return and can then NETFILE it at the same time as one's own T1 tax return. It has nothing to do with the W-8BEN form which is an IRS form.

canadian.100 said

I received a T1135 and I have NOT crossed the threshold of $100K CAD equivalent cost base of US domiciled investments, and for sure not the 250K threshold.
Bud - perhaps you should contact an accountant who can assist and guide you with correct information, provide advice and perhaps complete your tax return(s) properly if this is an area where you need assistance.  

Interesting. Why would an FI issue a T1135 if the line for "Maximum Cost During the Year" on the form does not show more than $100k? That is the defining number used to set the threshold for reporting.

Added: FIs do not submit the T1135 to CRA. The form, if provided to the client by the FI, is provided as 'information' for the taxpayer to use to complete their own T1135 submission.