Federal Income Tax and Benefit Guide – 2021
Before you file and Completing your return (Step 1)

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Before you file

Is this guide for you?

This guide provides you with the basic information you need to complete your 2021 Income Tax and Benefit Return. Use the information in the tax package, along with your information slips, receipts, and supporting documents, to complete your return.

Note

Even if you did not have any income in the year, you still have to file a return to get the benefits, credits, and refund you are entitled to.

New for 2021

Tax changes and improvements to services are noted in this section. Also noted are changes to income tax rules, including those that were announced but not yet law when this guide was published in November 2021. If these changes become law as proposed or announced, they will be effective for 2021 or as of the dates given. If new legislation is introduced, information will be available at Personal income tax: What's new. New items are flagged with NEW! throughout the guide.

Several changes have been made to the tax package, such as making the guide easier to read and moving the text for some income, deductions, and credits to the Federal Worksheet and schedules. You can also find more information about the lines on the return by going to canada.ca/line-xxxxx and replacing "xxxxx" with any 5-digit line number from the return. For example, go to canada.ca/line-10100 for information about line 10100. If you need information that is not provided in this tax package, call 1-800-959-8281.

The Canada Revenue Agency’s services

Electronic notices of assessment or reassessment for electronic filers

Sometime in 2022, the Canada Revenue Agency (CRA) will start the process of switching to electronic notices of assessment or reassessment when you file your income tax and benefit return. For more information, see Notice of assessment.

COVID-19 benefits and your taxes

Amounts received related to COVID-19

If you received federal, provincial, or territorial government COVID-19 benefit payments, such as the Canada Recovery Benefit (CRB), Canada Recovery Sickness Benefit (CRSB), or Canada Recovery Caregiving Benefit (CRCB), you will receive a T4A slip with instructions on how to report these amounts on your return. These slips are also available in My Account for Individuals.

If you are self-employed and received federal, provincial, or territorial government COVID-19 assistance for your business, such as the Canada Emergency Wage Subsidy (CEWS), Canada Emergency Rent Subsidy (CERS), Canada Recovery Hiring Program (CRHP) or Fish Harvester Benefit and Grant Program (FHBGP), you have to include these amounts in your business income or reduce your expenses by the amounts you received. If you received a government loan, the loan is not taxable but you have to include in your business income any portion of the loan that is forgivable.

If you received the CRB, you may have to repay all or part of the amount received if your net income after certain adjustments is more than $38,000. The repayment is calculated using the chart for line 23500 of the Federal Worksheet.

If your income was tax exempt

If your CRB, CRCB, or CRSB income is eligible for tax exemption under section 87 of the Indian Act, complete Form T90, Income Exempt from Tax under the Indian Act, and file your 2021 Income Tax and Benefit Return or simplified return to claim the tax withheld on your CRB, CRCB, and CRSB payments. For more information, go to Taxes and benefits for Indigenous peoples.

Federal COVID-19 benefits repayment

If you repaid federal COVID-19 benefits (CERB, CESBCRB, CRCB, or CRSB) in 2021 that you received in 2020, the amount repaid will be reported in box 201 of your T4A slip or on your T4E slip along with other employment insurance (EI) amounts repaid. You can choose to claim a deduction on your return for the repayment in the year that the benefit was received or in the year that the benefit was repaid. You may also choose to split the deduction between these two returns as long as the total deduction is not more than the amount repaid. For more information, see line 23210 or go to Repay COVID-19 benefits.

Individuals and families

Canada workers benefit

The Canada workers benefit (CWB) rates and income thresholds have changed for 2021. A new “secondary earner exemption” has also been introduced. For more information, see Schedule 6, Canada Workers Benefit.

Zero-emission vehicles

The definition of zero-emission vehicle has changed for vehicles acquired after March 1, 2020. A vehicle may still qualify as a zero-emission vehicle if the vehicle was subject to a prior capital cost allowance (CCA) or terminal loss claim provided that the vehicle was not acquired by the taxpayer on a tax-deferred "rollover" basis or previously owned or acquired by the taxpayer or a non-arm's length person or partnership. For more information, see Guide T4002, Self-employed Business, Professional, Commission, Farming, and Fishing Income, if you are self-employed, or Guide T4044, Employment Expenses, if you are claiming employment expenses.

Important

The legislation for the following measures was not finalized at the time that the tax package was printed. When the legislation is finalized, the CRA will republish electronically any revised guides and forms at Forms and publications. If you file your return before the revised forms are available, you may need to change your return. For more information, see How to change a return.

Disability tax credit

The rules relating to the mental functions necessary for everyday life, life-sustaining therapy, and the calculation of therapy time would change. For more information about the disability tax credit, see Guide RC4064, Disability-Related Information, or go to Tax credits and deductions for persons with disabilities.

Northern residents deductions

The deduction for travel benefits would change and be expanded to be available to eligible northern residents who take a trip even if their employer does not provide travel benefits for personal travel. For more information about the Northern residents deductions, see Information Sheet RC4650, Northern Residents Deductions, or go to Line 25500 – Northern residents deductions.

Postdoctoral fellowship income

Beginning in 2021, postdoctoral fellowship income would be included as earned income for registered retirement savings plan (RRSP) purposes. This change would provide postdoctoral fellows with additional RRSP contribution room in order to make deductible RRSP, pooled registered pension plan (PRPP), or specified pension plan (SPP) contributions. This measure would apply retroactively to 2011. If you reported postdoctoral fellowship income in a tax year after 2010 and before 2021, you could send an adjustment request to the CRA to have your RRSP contribution room adjusted.

Do you have to file a return?

File a return for 2021 if:

  • You have to pay tax for the year
  • You want to claim a refund
  • You want to claim the Canada workers benefit (CWB) or you received CWB advance payments in the year
  • You or your spouse or common-law partner want to begin or continue receiving credits and benefits (including any related provincial or territorial payments) such as:
    • Canada child benefit (CCB)
    • goods and services tax ⁄ harmonized sales tax (GST/HST) credit
    • guaranteed income supplement (GIS)

Note

If you have a spouse or common-law partner, they also have to file a return. For more information, see Booklet T4114, Canada Child Benefit and related federal, provincial, and territorial programs, and Guide RC4210, GST/HST Credit.

  • The CRA sent you a request to file a return
  • You and your spouse or common-law partner are jointly electing to split pension income (see line 11600)
  • You disposed of capital property (which could be a principal residence) or realized a taxable capital gain in the year
  • You have to repay all or part of your old age security (OAS) benefits, employment insurance (EI) benefits, or Canada recovery benefit (CRB)
  • You have not repaid all of the amounts you withdrew from your registered retirement savings plan (RRSP) under the Home Buyers’ Plan (HBP) or Lifelong Learning Plan (LLP)
  • You have to contribute to the Canada Pension Plan (CPP) for 2021 (this can apply if your total net self-employment income and pensionable employment income is more than $3,500)
  • You are paying EI premiums on self-employment income or other eligible earnings
  • You have incurred a non-capital loss in the year that you want to be able to apply to other years
  • You want to transfer unused tuition fees or carry forward unused tuition, education, and textbook amounts to a future year
  • You want to report income that would allow you to contribute to an RRSP, a pooled registered pension plan (PRPP), or a specified pension plan (SPP) to keep your RRSP deduction limit for future years up to date (see Schedule 7
  • You want to carry forward the unused investment tax credit on expenditures you incurred during the current year to a future year 
  • You want to report income that will allow you to increase your Canada training credit limit

Deceased persons

If you are the legal representative (executor, administrator, or liquidator) of the estate of a person who died in 2021, you may have to file a return for 2021 for that person. If there are no legal documents designating a legal representative, you may request to be the deceased person’s legal representative by completing an Affidavit form for intestate situations. For more information, see Guide T4011, Preparing Returns for Deceased Persons, and Information Sheet RC4111, Canada Revenue Agency – What to Do Following a Death.

Residential ties

Significant residential ties to Canada include:

  • a home in Canada
  • a spouse or common-law partner in Canada
  • dependants in Canada

Secondary residential ties that may be relevant include:

  • personal property in Canada, such as a car or furniture
  • social ties in Canada, such as memberships in Canadian recreational or religious organizations
  • economic ties in Canada, such as Canadian bank accounts or credit cards
  • a Canadian driver's licence
  • a Canadian passport
  • health insurance with a Canadian province or territory

To determine an individual’s residence status, all of the relevant facts in each case must be considered, including residential ties with Canada and the length of time, purpose, intent, and continuity of the stay while living inside and outside Canada.

Note

You are a factual resident of Canada for tax purposes if you keep significant residential ties in Canada while living or travelling outside the country.

For more information, see Income Tax Folio S5-F1-C1, Determining an Individual’s Residence Status.

Deemed residents

You are a deemed resident of Canada for tax purposes if one of the following applies:

  • On December 31, 2021, you were living outside Canada, you were not considered to be a factual resident of Canada because you did not have significant residential ties in Canada, and you were a government employee, a member of the Canadian Forces including their overseas school staff, or working under a Global Affairs Canada assistance program. This can also apply to the family members of an individual who was in one of these situations
  • You stayed in Canada for 183 days or more in the tax year, do not have significant residential ties with Canada, and are not considered a resident of another country under the terms of a tax treaty between Canada and that country

Non-residents

You are a non-resident for tax purposes if one of the following applies:

  • You normally live in another country and are not considered to be a factual resident of Canada
  • You do not have significant residential ties in Canada and one of the following applies:
    • You live outside Canada throughout the tax year
    • You stay in Canada for less than 183 days in the tax year

Which tax package should you use?

Generally, you should use the income tax package for the province or territory where you resided on December 31, 2021. However, if any of the following situations apply to you, use the income tax package specified:

  • If you resided in Quebec on December 31, 2021, use the income tax package for residents of Quebec to calculate your federal tax only. You must also file a Revenu Québec Income Tax Return
  • If you had residential ties in more than one province or territory on December 31, 2021, use the income tax package for the province or territory where you had your most important residential ties. For example, if you usually reside in Ontario but were going to school in Alberta or Quebec, use the income tax package for Ontario
  • If you are filing a return for a person who died in 2021, use the income tax package for the province or territory where that person resided at the time of death
  • If you emigrated from Canada in 2021, use the income tax package for the province or territory where you resided on the date you left
  • If you resided outside Canada on December 31, 2021, but kept significant residential ties with Canada, you may be considered a factual resident of Canada. If so, use the income tax package for the province or territory where you kept your residential ties. Also, complete Form T1248, Schedule D – Information about your Residency Status
  • If you resided outside Canada on December 31, 2021, and were considered a deemed resident or non-resident of Canada, use the Income Tax and Benefit Guide for Non-Residents and Deemed Residents of Canada. However, if you only earned income from employment in a province or territory, or earned income from a business with a permanent establishment in a province or territory, use the income tax package for that province or territory

Forms and publications

The CRA encourages you to file your return electronically. If you need a paper version of the CRA’s forms and publications, go to Forms and publications or call 1-800-959-8281.

Other publications you may need

You may need one or more of the following publications if you did not live in Canada all year:

Due dates

Your 2021 return and payment are due on or before the date below that applies to you:

  • For most people, the return is due April 30, 2022, and payment is due April 30, 2022
  • For a self-employed person and their spouse or common-law partner with business expenditures that relate mostly to a tax shelter investment, the return is due April 30, 2022, and payment is due April 30, 2022
  • For a self-employed person and their spouse or common-law partner (other than those stated above), the return is due June 15, 2022, and payment is due April 30, 2022
  • For a deceased person and their surviving spouse or common-law partner, see Guide T4011, Preparing Returns for Deceased Persons

When a due date falls on a Saturday, Sunday, or public holiday recognized by the CRA, your return is considered on time if the CRA receives it, or if it is postmarked, on or before the next business day. Your payment is considered on time if it is received on the first business day after the due date. For more information, go to Due dates and payment dates.

Penalties and interest

Penalties

The CRA may charge you a penalty if any of the following applies:

  • You filed your return late and you owe tax for 2021
  • You failed to report an amount on your return for 2021 and you also failed to report an amount on your return for 2018, 2019, or 2020
  • You knowingly, or under circumstances amounting to gross negligence, made a false statement or an omission on your 2021 return

For more information, go to Interest and penalties for individuals.

Interest on your balance owing

If you have a balance owing for 2021, the CRA will charge compound daily interest starting May 1, 2022, on any unpaid amount owing for 2021. This includes any balance owing if the CRA reassesses your return.

Interest on your refund

The CRA will pay you compound daily interest on your tax refund for 2021 in some situations. The calculation will start on the latest of the following three dates:

  • May 30, 2022
  • the 30th day after you file your return
  • the day after you overpaid your taxes

Cancel or waive penalties or interest

The CRA administers legislation, commonly called taxpayer relief provisions, that gives the CRA the discretion to cancel or waive penalties or interest when a taxpayer cannot meet their tax obligations due to circumstances beyond their control.

The CRA’s discretion to grant relief is limited to any period that ended within 10 calendar years before the year a request is made.

For penalties, the CRA will consider your request only if it relates to a tax year or fiscal period ending in any of the 10 calendar years before the year you make your request. For example, your request made in 2022 must relate to a penalty for a tax year or fiscal period ending in 2012 or later.

For interest on a balance owing for any tax year or fiscal period, the CRA will consider only the amounts that accrued during the 10 calendar years before the year you make your request. For example, your request made in 2022 must relate to interest that accrued in 2012 or later.

To make a request, fill out Form RC4288, Request for Taxpayer Relief – Cancel or Waive Penalties or Interest. For more information, go to Taxpayer relief provisions.

Ways to file your return

NETFILE

Use the CRA’s secure service to complete and file your return electronically using certified tax preparation software or a web tax application. Go to File your taxes online for a list of software and applications, including some that are free.

EFILE

This is a secure CRA service that lets authorized service providers, including discounters, complete and file your return electronically. For more information, go to EFILE for individuals.

Note

Auto-fill my return is a secure CRA service that allows you or your authorized representative to automatically fill in certain parts of your 2021, 2020, 2019, and 2018 returns. You must be registered with My Account (or your representative must be registered with Represent a Client) and be using a certified software product (NETFILE or EFILE). For more information, go to Auto-fill my return.

File my Return

This is a free and secure CRA service available to eligible individuals who have low or fixed income and whose tax situations stay the same from year to year.

If you are eligible, you will receive an invitation by letter in the mail. You will then be able to file your return by giving the CRA some personal information and answering a series of short questions through an automated phone service. You do not have to fill out any paper forms or do any calculations.

File a paper return

Complete and file the return included in your tax package. If you need a paper version of other forms and publications, go to Forms and publications or call 1-800-959-8281.

Get help doing your taxes

The following services may help you to complete your tax return based on your personal tax situation.

Community Volunteer Income Tax Program (CVITP) and Income Tax Assistance – Volunteer Program (for residents of Quebec)

If you have a modest income and a simple tax situation, volunteers can complete your tax return for free.

To find out if you qualify for these services and to find a tax clinic, go to Free tax clinics or call the CRA at 1-800-959-8281. If you want to become a volunteer, go to Volunteer to do taxes for people in your community.

Tax Information Phone Service (TIPS)

For tax information by telephone, use the CRA’s automated service, TIPS, by calling 1-800-267-6999.

Individual enquiries by phone

Call 1-800-959-8281 from Canada or the United States. TIPS is available 24 hours a day, 7 days a week.

Agents are available Monday to Friday (except holidays), 8 am to 8 pm (local time), and on Saturdays (except holidays) from 9 am to 5 pm (local time).

Individuals in the territories

Call 1-866-426-1527 for tax and benefit information for individuals living in the territories. This is a dedicated phone line available only to residents of Yukon, the Northwest Territories, and Nunavut (area code 867).

Business enquiries by phone

Call 1-800-959-5525. TIPS is available 24 hours a day, 7 days a week.

Agents are available Monday to Friday (except holidays), 8 am to 8 pm (local time), and on Saturdays (except holidays) from 9 am to 5 pm (local time).

Businesses in the territories

Call 1-866-841-1876 for tax information for businesses operating in the territories. This is a dedicated phone line available only to residents of Yukon, the Northwest Territories, and Nunavut (area code 867).

Teletypewriter (TTY) users

If you have a hearing or speech impairment and use a TTY, call 1-800-665-0354, Monday to Friday (except holidays), 8 am to 8 pm (local time), and on Saturdays (except holidays) from 9 am to 5 pm (local time).

If you use an operator-assisted relay service, call the CRA's regular telephone numbers instead of the TTY number.

Gather your documents

Gather all of the information slips, receipts, and supporting documents that you need to report your income and claim any deductions, credits, or expenses.

Missing slips or receipts

File your return on time even if you do not have all of your slips or receipts. You are responsible for reporting your income from all sources to avoid any penalties and interest that could be charged. If you have not received your slips by early April or if you have any questions about an amount on a slip, contact the payer.

Did you know: Missing Slip Pay Stub

Did you know...

If you know you won’t be able to get a missing information slip by the due date, use your final pay stub or statement to estimate your income and any related deductions, credits, and expenses you can claim. Enter the estimated amounts on the appropriate lines of your return.

Completing your return

Step 1 – Identification and other information

Use the instructions on your return to complete Step 1.

Email address

Enter your email address on your return if you would like to receive email notifications from the CRA and you agree to the terms of use for email notifications below. You can also register for email notifications by signing in to My Account for Individuals and selecting the “Notification preferences” service.

Terms of use for email notifications

  • The CRA will use the email address provided to notify you about any CRA mail available in My Account, when certain changes are made to your account information, and other important account information
  • Any mail that is eligible for electronic delivery will no longer be printed and mailed
  • The notifications that are eligible for this service may change. You may not always be notified when new types of notifications are added or removed from this service
  • To view CRA mail online, you must be registered for My Account, and/or your representative must be registered for Represent a Client and be authorized on your account
  • All CRA mail available in My Account is presumed to have been received on the date that the email notification is sent
  • It is your responsibility to make sure that the email address provided to the CRA is up to date
  • CRA email notifications are subject to the terms of any agreement with your mobile carrier or Internet service provider. You are responsible for any fees imposed by them
  • Email notifications are sent unencrypted and unsecured. They could be lost, intercepted, viewed, or altered by others who have access to your email account. You accept this risk and acknowledge that the CRA will not be liable if you are unable to access or receive the email notifications, nor for any delay or inability to deliver notifications
  • These terms of use may change from time to time. The CRA will provide advance notice of the effective date of any new terms. You agree that the CRA may notify you of these changes by emailing the new terms, or notice of where to find them, to the email address that you provided. You agree that your use of the service after the effective date of any change to these terms constitutes your agreement to the new terms. If you do not agree to the new terms, you must remove your email address from My Account and no longer use the service.

Social insurance number (SIN)

For more information about the SIN, including how to apply for one, go
to Social insurance number.

Marital status

Tick the box on your return that applies to your marital status on December 31, 2021.

Married means that you have a spouse. This term only applies to a person you are legally married to.

Living common-law means that you are living in a conjugal relationship with a person who is not your married spouse, and at least one of the following conditions applies:

  • This person has been living with you in a conjugal relationship for at least 12 continuous months

Note

In this definition, 12 continuous months includes any period you were separated for less than 90 days because of a breakdown in the relationship.

  • This person is the parent of your child by birth or adoption
  • This person has custody and control of your child (or had custody and control immediately before the child turned 19 years of age) and your child is wholly dependent on them for support

Separated means that you have been living apart from your spouse or common-law partner because of a breakdown in the relationship for a period of at least 90 days.

Once you have been separated for 90 days because of a breakdown in the relationship, the effective date of your separated status is the day you started living apart.

If you file your return before your 90-day separation period is over and that period includes December 31, enter your marital status as married or living common-law, as applicable. If, after filing your return, you continue to live separate and apart from your spouse or common-law partner and you have been living this way for at least 90 days, complete Form RC65, Marital Status Change, using the date of the beginning of the 90-day period as your date of separation. You will also have to file an amended return to adjust your entitlement for any credits claimed or to apply for credits that you may not have been entitled to when you were married or living common-law.

Widowed means that you had a spouse or common-law partner who is now deceased.

Divorced means that you are legally divorced from your former spouse.

Single means that none of the other marital statuses applies to you.

Did you know: Common-law and Involuntary seperation

Did you know...

You are still considered to have a spouse or common-law partner if you were separated involuntarily and not because of a breakdown in your relationship. An involuntary separation could happen when one spouse or common-law partner is living away for work, school, or health reasons, or is incarcerated.

Residence information

Enter the province or territory where you lived or were considered to be a factual resident on December 31, 2021.

Your spouse's or common-law partner's information

Enter the information and amounts that are reported on your spouse’s or common-law partner’s return. If they are not filing a return, enter the amounts that would be reported as if they were filing a return even if their income is zero. 

Notes

Your spouse or common-law partner may still have to file a return for 2021 even if you enter their amounts on page 1 of your return. See Do you have to file a return?

If you became separated or widowed in the year, enter on page 1 of your return the following information about your former or deceased spouse or common-law partner to claim certain credits:

  • their first name 
  • their social insurance number 
  • their net income before the separation or before they died 

Residency information for tax administration agreements

In some provinces and territories, you are also required to identify whether you resided on the settlement lands of an Indigenous government on December 31, 2021.

These Indigenous governments are:

  • Nisga’a Lisims Government (in British Columbia)
  • Nunatsiavut Government (in Newfoundland and Labrador)
  • Tåîchô Government and Délı̨nę Got’ı̨nę Government (in the Northwest Territories)
  • the 11 self-governing Yukon First Nations

If you resided on the settlement lands of an Indigenous government in Yukon, the Northwest Territories, or British Columbia, you may also have to identify if you are a citizen or member of one of these Indigenous governments.

Your response to these questions will not affect the amount of tax you pay; however, it will ensure that the Indigenous government receives the correct tax revenue in accordance with its personal income tax administration agreement. For more information, go to Information on the tax exemption under section 87 of the Indian Act.

Elections Canada

Ticking yes in the "Elections Canada" section of your return is an easy way to keep your voter registration up to date, if you are qualified to vote. As well, Canadian youth aged 14 to 17 have the opportunity to add their names to the Register of Future Electors.

Elections Canada will use the information you provide to update the National Register of Electors (the database of Canadian citizens qualified to vote in federal elections, by-elections, and referendums) or, if you are 14 to 17 years of age, to update the Register of Future Electors. The Register of Future Electors allows young Canadian citizens aged 14 to 17 to register with Elections Canada before turning 18. Once they turn 18 and their eligibility to vote is confirmed, they are added to the National Register of Electors.

Elections Canada uses the information in the National Register of Electors to prepare lists of electors for federal elections, by-elections and referendums and to communicate with voters. Other uses of the information permitted under the Canada Elections Act include providing voter information to provincial and territorial electoral agencies for uses permitted under their respective legislation, and providing voter information (not including birth dates) to members of Parliament, registered and eligible political parties, and candidates at election time.

Information in the Register of Future Electors cannot be shared with members of Parliament, registered or eligible political parties, or candidates. However, it can be shared with the provincial and territorial electoral agencies that are allowed to collect future elector information under their respective legislation. It can also be used by Elections Canada to provide youth with educational information about the electoral process.

Only persons 18 years of age or older who have Canadian citizenship are qualified to vote. Generally, you are a Canadian citizen either by birth or if you have obtained Canadian citizenship through the formal process of becoming a Canadian citizen (naturalization). If you are unsure about your Canadian citizenship status, refer to the Immigration, Refugees and Citizenship Canada website at See if you may be a citizen.

Questions A and B are optional. If you are a Canadian citizen 18 years of age or older, you will not lose your right to vote regardless of whether you answer the questions or leave them blank. The CRA does not use this information for the purpose of processing your return.

If you have Canadian citizenship and authorize the CRA to share your name, address, date of birth, and Canadian citizenship confirmation with Elections Canada, tick yes to both questions. If you do not authorize the CRA to share your information with Elections Canada, tick no to question B.

If you do not have Canadian citizenship, tick no to question A and leave question B blank.

If during the year you change your mind about the CRA sharing your information with Elections Canada, call the CRA at 1-800-959-8281 to remove your authorization. To be removed from either Register, contact Elections Canada.

If you tick no to question B:

  • The CRA will not give any of your information to Elections Canada
  • Elections Canada will not remove your information from either Register if your name is already there, or from federal lists of electors if you are a Canadian citizen 18 years of age or older
  • You will have to register before you vote if there is a federal election, by-election, or referendum and you are a Canadian citizen 18 years of age or older who is not already registered with Elections Canada 
  • You will have to take steps to register with Elections Canada in order to vote when you turn 18 years of age

Deceased persons

If you are completing a return for a deceased person who consented to provide information to Elections Canada on their last return, the CRA will notify Elections Canada who will then remove the deceased person’s name from the relevant Register.

For more information, visit Elections Canada or call 1-800-463-6868. Teletypewriter (TTY) users can call 1-800-361-8935.

Foreign property

Specified foreign property includes all of the following:

  • funds or intangible or incorporeal property (patents, copyrights, etc.) situated, deposited, or held outside Canada
  • tangible or corporeal property situated outside Canada
  • a share of the capital stock of a non-resident corporation held by the taxpayer or by an agent on behalf of the taxpayer
  • an interest in a non-resident trust that was acquired for consideration, other than an interest in a non-resident trust that is a foreign affiliate
  • shares of corporations that are residents of Canada held by you or for you outside Canada
  • an interest in a partnership that holds a specified foreign property unless the partnership is required to file Form T1135
  • an interest in, or right with respect to, an entity that is a non-resident
  • a property that is convertible into, exchangeable for, or confers a right to acquire a property that is specified foreign property
  • a debt owed by a non-resident, including government and corporate bonds, debentures, mortgages, and notes receivable
  • an interest in a foreign insurance policy
  • precious metals, gold certificates, and futures contracts held outside Canada

Specified foreign property does not include any of the following:

  • property in your registered retirement savings plan (RRSP), pooled registered pension plan, registered retirement income fund, registered pension plan, or tax-free savings account
  • foreign investments held in Canadian mutual funds
  • property used or held exclusively in the course of carrying on your active business
  • your personal-use property

Note

You have to file Form T1135 for 2021 no later than April 30, 2022, (June 15, 2022, if you or your cohabiting spouse or common-law partner carried on a business in 2021, other than a business whose expenditures are primarily made in the course of a tax shelter investment). For more information, see Form T1135.

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