What qualifies as Specified Foreign Property is described in a list in the Income Tax Act under subsection 233.3(1). The most common assets that qualify include bank accounts held abroad, shares of non-resident (i.e. foreign) corporations, interests in a non-resident trust, land or buildings held abroad, shares of Canadian-resident corporations held by the taxpayer (or for the taxpayer) abroad, an interest in a foreign insurance policy, precious metals and gold certificates held abroad, futures contracts held abroad, or an interest in a partnership that holds Specified Foreign Property.
Specified Foreign Property does not include property held or used exclusively in carrying on an active business, shares of a foreign affiliate, an interest in the indebtedness of a foreign affiliate, an interest in an exempt trust,
personal-use property, or an interest in, or a right to acquire, any of the aforementioned excluded foreign property.
Personal-use property is defined in section 54 of the Income Tax Act and includes vacation property that is used primarily as a personal residence, and
listed personal property such as works of art, jewelry, rare folios, rare manuscripts, rare books, stamps, and coins.
"This article provides information of a general nature only. It is only current at the posting date. It is not updated and it may no longer be current. It does not provide legal advice nor can it or should it be relied upon. All tax situations are specific to their facts and will differ from the situations in the articles. If you have specific legal questions you should consult a lawyer."