What cost amount does a newcomer use for foreign property already owned when moving to Canada?
Bottom line: CRA says a new resident generally uses the property’s fair market value when they first became resident in Canada as the cost amount for future T1135 threshold testing.
What the current CRA rule means
Record defensible fair market values at the residency start date for foreign investments and other potentially specified foreign property. Those values can become important in later years when testing whether the aggregate T1135 cost threshold is exceeded.
Why newcomers get this wrong
The first Canadian tax year combines several systems that are easy to mix together: immigration status, income-tax residency, benefit eligibility, filing access and foreign-information reporting. A rule that answers one of those questions does not automatically answer the others. For example, income earned before Canadian tax residency may be outside ordinary Canadian taxation but still be requested to calculate income-tested benefits or certain credits.
What to verify before filing
Confirm the date Canadian tax residency actually began, gather Canadian and foreign income records for the relevant periods, and keep documents supporting any cross-border position. If the issue involves a tax treaty, foreign corporation, trust, significant foreign investments or an uncertain residency date, the downside of getting the treatment wrong can be much larger than the cost of professional advice.
Primary CRA source
CRA — T1135 questions and answers →
Related newcomer tax tools
Newcomer First Tax Return Checker →
2026 Newcomer Tax & Benefit Rules Reference →
First Canadian tax return guide →
Tax residency for newcomers →
Tax software in Canada →
This page summarizes public CRA guidance and is not personalized tax advice. Rules and forms can change.