What are the new rules for Foreign Holdings reporting?

Very important changes are coming through for those who have assets offshore.

The new Form T1135 requires that you report the original purchase price of the assets as well as all the income earned in the year in foreign bank accounts if the aggregate cost of assets held offshore is $100,000 or more.  However, this does not include property held or used exclusively in an active business or personal use property such as a vacation property used primarily (50% of the time or more) for personal use and enjoyment.

Also, if you receive a T5 or T3 slip you will simply have to tick a box on the form. There are significant penalties for those who fail to file the form this year. See your tax professional now if you have any questions or concerns. Form T1135 must be filed whether or not you file a T1 return.