Foreign property over $100, 000 - Form 1135


I realize that if I own property outside Canada valued over CAD 100,000 I need to declare it to the CRA. That was no problem to me until 2006 when a hot real estate market in India pushed the price of my property up over the limit. My  question is : On what basis should I apply the 100,000 dollar rule? The current market price converted to CAD? (which is  120,000 CAD) Or the cost basis? (I paid 20,000 CAD for the property in 1999)

The property does not generate any income.
  david ingram replies:

cost price - you do not need to report its existence on form 1135  if you paid less than $100,.000.  However, if you paid $5,000 and it got $100 rent a year, you would have to report the rent, just not form 1135. �