Ask Allan a Tax Question and he will respond to you with an answer to your question within 24 hours!
Thank you Allan for your great Forum! We bought condo in US in 2012 and we personally use it from 2-4 months per year and rent it for the rest. When we deducted expenses and depreciation we did have a loss and we decide not to calculate depreciation for US return. Income was reported in US but not in Canada. Can I calculate CCA for Canadian T1135 tax filing. Thanks
Hi Marjana, you must report the cost amount of foreign property in excess of $100,000 on form T1135. For example, assume that you and your spouse jointly purchased a US rental property for $250,000 CAD. The cost amount per spouse comes to $125,000 ($250,000 divided by 2), which is in excess of $100,000. As a result, both spouses would need to complete form T1135. Failure to file form T1135 can result in a penalty of $2,500 per year, per person.
If you are facing penalties for failure to file form T1135, then it’s best to file under the Voluntary Disclosure Program to waive those penalties. I can help with this process.
in Accounting & Taxation Services
Ready to leave your accounting and taxation worries behind?
Unit 20, 145 Traders Blvd E Mississauga ON, L4Z 3L3 Canada
Call: (905) 268-0150 Email: info@madanca.com
SOCIAL CONNECT