Do I have to report my Florida vacation home to the CRA?

If you use it mainly for personal enjoyment and never rent it out, it is generally exempt from Form T1135 as personal-use property. If you rent it out to earn income and it cost more than CAD $100,000, it becomes reportable.

Is T1135 based on what I paid or what the property is worth now?

On what you paid, the cost amount, not fair market value. The $100,000 threshold is measured against the aggregate cost of all your specified foreign property.

How much does FIRPTA withhold when I sell my US condo?

Generally 15% of the gross sale price. It can drop to 10% or 0% if the buyer will use the property as a residence and the price is under certain thresholds, but it applies to the full sale price, not your profit.

Can I get the FIRPTA money back?

Yes. FIRPTA is a withholding deposit, not your final tax. You file a US return (Form 1040-NR) to report the actual gain and reclaim the excess, or apply for a withholding certificate before closing to reduce it up front. You will need a US ITIN.

Does owning US property through a Canadian company avoid FIRPTA?

No. A Canadian corporation is a foreign person for FIRPTA purposes, so the withholding still applies, and it can add US estate-tax exposure. Get cross-border structuring advice before you buy.

Canadian Tax on Foreign Property in 2026: The T1135 Reporting Rule and the Snowbird Trap

Published on: July 6, 2026

Please note: This article is general information, not tax, legal, or accounting advice. Cross-border tax is complex, and Canadian and US rules, thresholds, and treaty positions change. Figures are current as of mid-2026. Consult a qualified cross-border tax professional before acting.

Quick answer: As a Canadian resident you are taxed on your worldwide income, so foreign rental income and gains are reportable. You must also file Form T1135 if your specified foreign property cost more than CAD