NEW IMMIGRANT FILING FIRST TIME TAX RETURN (HAVING PROPERTIES ABROAD)

[vermas]

My parents came here as visitors and got their PRs in June 2020. They completed their virtual landing here during Covid time.
They have moveable and immovable assets in home country.
They will be filing their first income tax return here.
1-Should they report value of their moveable and immovable assets in the return.
2- Should they get Fair Market Value for their properties on the day they became PRs and their mutual funds and stocks for reporting and calculating capital gains tax liability in the future?
3- How does exchange range change between FMV date and sale/redemption date effect the calculation of capital gain?
4- So they need to fill any form other than the return?

 

[hyong1991]

My parents came here as visitors and got their PRs in June 2020. They completed their virtual landing here during Covid time.
They have moveable and immovable assets in home country.
They will be filing their first income tax return here.
1-Should they report value of their moveable and immovable assets in the return.
2- Should they get Fair Market Value for their properties on the day they became PRs and their mutual funds and stocks for reporting and calculating capital gains tax liability in the future?
3- How does exchange range change between FMV date and sale/redemption date effect the calculation of capital gain?
4- So they need to fill any form other than the return?

I Work in Tax ,

1.) Yes, there's a form T1135 that you're parents would have to fill up , you may read more about this here https://www.canada.ca/en/revenue-ag...rting/questions-answers-about-form-t1135.html

2.) Yes, please do so, it'd save a lot of headache in the future.

3.) The FMV will be the converted amount in CAD on the day of immigration.

4.) T1135 is required if they have > 100,000k CAD in total or the equivalent,


Try to set up an appt, with a cpa / accounting firm if you can, they'd be able to give you more specific advise.

 

[8494193]

Also note that you still have to report any capital gains/losses on foreign property even if you are not required to file the T1135 (i.e. foreign property <100K).

 

[mbaleine]

Lifted directly from T1135:

An individual (other than a trust) does not have to file Form T1135 for the year in which the individual first becomes a resident of Canada (section 233.7 of the Act).