Q: Hi team -
I apologize for dragging on the T1135 subject, but I'm a bit confused by your response to Henry's example of the VALUE of his initial $50K investment rising above $100K at anytime of the year.
You said "Yes, in this case you would need to fill out form 1135. The requirement is if foreign assets are greater than $100,000 at any time during the taxation year."
I'm confused because I'm under the impression that if the total COST of the security is above $100K anytime of the year it would then become a requirement. If Henry bought at JNJ $50K and then held on indefinitely without purchasing any more shares he would not have this requirement regardless of whether or not the market value increased beyond $100K. I thought the key word is COST.
Am I missing something here? Thanks for your help.
I apologize for dragging on the T1135 subject, but I'm a bit confused by your response to Henry's example of the VALUE of his initial $50K investment rising above $100K at anytime of the year.
You said "Yes, in this case you would need to fill out form 1135. The requirement is if foreign assets are greater than $100,000 at any time during the taxation year."
I'm confused because I'm under the impression that if the total COST of the security is above $100K anytime of the year it would then become a requirement. If Henry bought at JNJ $50K and then held on indefinitely without purchasing any more shares he would not have this requirement regardless of whether or not the market value increased beyond $100K. I thought the key word is COST.
Am I missing something here? Thanks for your help.