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If I receive a cash amount of inheritance from my father in my country of origin, and I keep it in a bank account there, how do I report it to the CRA. It is inherited directly, not through a trust. Which forms to use ? Any other documentation required ?
Hi Aahh,
The foreign inheritance you received is not taxable to you in Canada. However, you do have to report cash held in a foreign country on form T1135, foreign income verification statement, if the total cost amount of all of your foreign assets is greater than $100,000. Form T1135 should be attached to your Canadian personal tax return (T1).
In addition, any interest income earned on your foreign cash, must be reported on Schedule 4, Statement of Investment Income. Interest income is taxable to you in Canada.