Do I Need to Report Foreign Rental Income in Canada
                     Do I Need to Report Foreign Rental Income in Canada?
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Are you confused about Canadian Income Tax Rules? Should you be 
reporting your foreign rental income in Canada? Well, let us find out. 
Regarding reporting rental income for Canadian income tax purposes, 
foreign and domestic rental income are regarded equally. A Canadian 
taxpayer must therefore reveal all of their worldwide income.
What if the cost of foreign properties is more than $100,000 
CAD? Then you must fill out the T1135 form, which is also known as 
the foreign income verification statement. Continue reading to learn 
more
How to Report Foreign Rental Income?
• To report your foreign rental income while filing income tax returns 
in Canada, fill out the T776 Form, also known as the Statement of 
Real Estate Rentals.
• Keep in mind that your international rental income must be 
reported in Canadian dollars
• To avoid double taxation, income taxes paid to the foreign 
jurisdiction on rental income can be claimed as a foreign tax credit 
on the taxpayer's Canadian income tax return
Who has to fill out the T1135 Form?
You must file the T1135 form, also known as the Foreign Income 
Verification Statementshould you own properties outside Canada 
that’s worth more than$100,000 CAD at any time during the year. 
When filling out the T1135 form, you must consider the cost of the 
property rather than its current value. If you purchased the land for 
less than $100,000 and its current value exceeds $100,000, you do 
not need to complete the T1135 form.
-No need to declare any Canadian registered mutual funds
-Exclude vacation property that you use primarily as a personal 
residence.
- Also, omit funds in your pension plan, income, or property that you 
use exclusively related to your active business.
When is T1135 due?
T1135 forms must be filed on the same day as your income tax 
return. So, it’s a good idea to file T1135 before the due date of your 
personal income tax return.
If you fail to submit the foreign income verification statement on 
time, you may face $25 per day penalties. The fine can even reach 
$2,500 per year. If you missed a year, you can correct previous tax 
returns by submitting the forms through the CRA’s 
Voluntary Disclosure Program.
Hope all your doubts about reporting foreign rental income have 
been cleared now. Remember to get expert advice before investing in 
international real estate.
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