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T1 & T2 & T3
411 Foreign income
For tax year 2013, a new transitional reporting method is authorized in section 6 of Form T1135 - Foreign Income Verification Statement. What is it exactly?a) 2013 Transitional Reporting Method For the 2013 tax year, taxpayers are permitted to use the following 2013 Transitional Reporting Method to complete Form T1135: 1. Canadian registered securities dealer reporting method A taxpayer who held specified foreign property in an account in the taxpayer's name (or jointly with another taxpayer) with a Canadian registered securities dealer (as defined in subsection 248(1) of the Act) is permitted to report the aggregate amount of all such property held in that particular account in Category 6 "Other property outside of Canada". A taxpayer who chooses to use this reporting method must use it for all accounts with Canadian registered securities dealers. 2. Unit trust reporting method A unit trust (as defined in subsection 108(2) of the Act) resident in Canada is permitted to report the aggregate amount of all specified foreign property it held in Category 6 "Other property outside of Canada". If the 2013 transitional reporting method is being used, provide the following information in Category 6 (Other property outside Canada) of Form T1135: "Description of property" - enter the name and account number of each Canadian registered securities dealer account (or the name of the unit trust) on a separate row; "Country code" - enter CAN; "Maximum cost amount during the year enter" - enter "0"; "Cost amount at year end" - enter the market value of all specified foreign property held in that account (or by the unit trust) at the end of the particular tax year; "Income (loss)" - provide the total income earned on all specified foreign property held in that account (or by the unit trust) at any time during the particular tax year; "Gain (loss) on disposition" - provide the total gross gain or loss realized on the disposition of all specified foreign properties held in that account (or by the unit trust) at any time during the particular tax year. Please note that you cannot use this method in the current T1 and T2 versions of DT Max because it is not possible to enter the country code "CAN". We recommend that you wait until the next T1 release (late March) and T2 release (March 19th) in order to be able to use the transitional reporting method for 2013. b) Due date for filing Form T1135 For the 2013 tax year, the filing deadline has been extended to July 31, 2014 for all taxpayers. |
