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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.