Should the T1135 be filed in this case? - Urgent

[Gliese]

Hello everyone,

My cousin currently was preparing his tax returns and found some questions really made him concerned. When he used this Ufile to file taxes, he was always asked whether he owns foreign property over $100,000. He is so confused if he needs to report the foreign property and file the T1135, since he has rental property from another country which worth more than $10k.

Regards to his background, he is an international Phd student, and he is living with his common law spouse who is also an international student.

Please can anyone help out if he have to file the T1135 and report the rental incomes?

If yes, will he suffer the penalty since he owns this property for two years, but he didn't file the T1135 last year.

Thanks a lot.

 

[steaky]

If he reports his foreign rental income in his T1, then he would have to do the same for his T1135.

 

[Gliese]

If he reports his foreign rental income in his T1, then he would have to do the same for his T1135.

Thanks for your reply!

So the question is, does he need to report the foreign rental income? I tried to call the CRA, the rep said it depended on his residency, whether he was resident for tax purpose or not. But the rep couldn't give me the conclusion via the phone.

 

[steaky]

So the question is, does he need to report the foreign rental income? I tried to call the CRA, the rep said it depended on his residency, whether he was resident for tax purpose or not. But the rep couldn't give me the conclusion via the phone.

Maybe it's because you did not tell him whether or not your cousin was resident for tax purposes or not. If he was, he would need to report his foreign rental income. Otherwise, he do not report his foreign income.

 

[Gliese]

Maybe it's because you did not tell him whether or not your cousin was resident for tax purposes or not. If he was, he would need to report his foreign rental income. Otherwise, he do not report his foreign income.

Yes, so the real question is, whether he is resident for tax purpose or not. I don't know whether he is or not. It's difficult to read from the CRA website. And I tried to ask the rep if he is resident or not, the rep said he could not determine.

So based on his case, do you think he is resident for tax purpose?

Thanks!!

 

[steaky]

Yes, so the real question is, whether he is resident for tax purpose or not. I don't know whether he is or not. It's difficult to read from the CRA website. And I tried to ask the rep if he is resident or not, the rep said he could not determine.

So based on his case, do you think he is resident for tax purpose?

Thanks!!

I too cannot determine whether he is or not!

Btw, did he file any tax return for 2013? If he did and it was a T1, he might continue be a resident for tax purposes for 2014.

Also, there's a form (NR74) in the CRA website for someone to determine their residency status in Canada. Perhaps he might want to send it:

http://www.cra-arc.gc.ca/tx/tchncl/ncmtx/fls/s5/f1/s5-f1-c1-eng.html