Money brought into Canada

[etcetera]

I'd like to seek some advice regarding money brought into Canada. My wife and I will be landing in 2 months. We plan to carry $30,000 CND in cash and another $70,000 in bank draft which will be drawn at Citibank. After completing the formalities, I'll go back to my home country for 6 months to finish my job while my wife will stay in Canada. Upon my returning, I'll send the last amount of our savings by electronic transfer.
My questions are as follows:

1. Is the last amount that will be transferred electronically will be taxed?
2. As for the bank draft, I plan to open an account with TD. The draft I'll carry will be drawn in Citibank. My question is TD will accept a draft drawn at Citibank? How long will it take to recieve the money?

Your help is appropriated. Thanks in advance.

 

[steaky]

1) As long as you have declared the last amount in your tax return, the principal would not be taxed. However, the income part would be taxed.
2) Not sure about TD, but HSBC accepted my draft drawn at Citibank and I have access to that money immediately.

 

[shah2014]

@steaky

What you mean by deceleration of last amount in tax return? As per my understanding, anyone landing in Canada now will have to file tax return next year i.e. around March 2016 for the period from landing till Dec 2015.

Actually, i have slightly similar situation, some of my funds are not liquid (i will be carry more than required settlement funds in CAD demand draft at time of landing) and i plan to bring them at later date either through Wire Transfer or Demand Draft (if i got a chance to go back). Whereas, the deceleration form only asks for Cash or Near Cash. How can i declare these assets.

In this regard, At some place I have read that any amount I take along at the time of landing is TAX-free, after that I may have to pay taxes even on existing saving that I take on later date.

While at other places and as per my consultant, any amount I take during 1st year of my landing is tax free.

What’s your understanding of the matter? Any solid reference?

1) As long as you have declared the last amount in your tax return, the principal would not be taxed. However, the income part would be taxed.
2) Not sure about TD, but HSBC accepted my draft drawn at Citibank and I have access to that money immediately.

 

[PMM]

Hi

@ steaky

What you mean by deceleration of last amount in tax return? As per my understanding, anyone landing in Canada now will have to file tax return next year i.e. around March 2016 for the period from landing till Dec 2015.

Actually, i have slightly similar situation, some of my funds are not liquid (i will be carry more than required settlement funds in CAD demand draft at time of landing) and i plan to bring them at later date either through Wire Transfer or Demand Draft (if i got a chance to go back). Whereas, the deceleration form only asks for Cash or Near Cash. How can i declare these assets.

In this regard, At some place I have read that any amount I take along at the time of landing is TAX-free, after that I may have to pay taxes even on existing saving that I take on later date.

While at other places and as per my consultant, any amount I take during 1st year of my landing is tax free.

What's your understanding of the matter? Any solid reference?

1. What Steaky is saying is that any interest that you money earns overseas after your date of "landing" has to be declared on your income tax. Not the principal, but the interest. If the interest is taxed in your home country, then those taxes could be applied to your Canadian tax return.

 

[shah2014]

@PMM

Tx, but what if the funds are invested in property and equity?

Do i have to pay Capital gain tax on all of the amount or just the gain after landing. I can prove the difference for equities (using the quoted price as of the day of landing) but wht abt property. If i have to pay CGT on gain since purchase, i will be in bad shape. No CGT is applicable in my home country both the assets were purchased years ago and now exempt.

Hi


1. What Steaky is saying is that any interest that you money earns overseas after your date of "landing" has to be declared on your income tax. Not the principal, but the interest. If the interest is taxed in your home country, then those taxes could be applied to your Canadian tax return.

 

[cooldoc80]

i'm actually in same position , i have some property which i intend to sell later , its neither rented nor there is any gain on it . would i have to pay tax on it later when i sell it after landing ?

of do you guys advise i sell everything before landing so i could bring the money in without taxation ?

thanks

 

[steaky]

@ PMM

Tx, but what if the funds are invested in property and equity?

Do i have to pay Capital gain tax on all of the amount or just the gain after landing. I can prove the difference for equities (using the quoted price as of the day of landing) but wht abt property. If i have to pay CGT on gain since purchase, i will be in bad shape. No CGT is applicable in my home country both the assets were purchased years ago and now exempt.

Generally every tax payer would have to declare their overseas assets worth more than $100,000 in their tax returns. Assets would include equities, indebtedness and properties. I suggest you read the CRA website for details.

 

[steaky]

i'm actually in same position , i have some property which i intend to sell later , its neither rented nor there is any gain on it . would i have to pay tax on it later when i sell it after landing ?

of do you guys advise i sell everything before landing so i could bring the money in without taxation ?

thanks

If there is a loss, then you can use it as a capital loss. I don't suggest you to sell everything because you don't know what your future holds in Canada. In fact, many immigrants come here only to realized that they could not find job in Canada or Canada is unsuitable for them. Upon their return, they realized that property prices had rose so significantly in their home country and they cannot afford to live in similar size accommodation before they moved to Canada and had to live in smaller flats.

 

[etcetera]

Guys, thanks so much for your time answering my question. Appreciated it. Now I'd like to ask one more question. Let's say that in another 5 years, I receive a sum of money as a gift from my mother and I plan to bring that amount to Canada. Is gift (money) received from overseas taxable? Thanks in advance.

 

[PMM]

Hi

Guys, thanks so much for your time answering my question. Appreciated it. Now I'd like to ask one more question. Let's say that in another 5 years, I receive a sum of money as a gift from my mother and I plan to bring that amount to Canada. Is gift (money) received from overseas taxable? Thanks in advance.

1 No, there is no taxes on gifts.

 

[cooldoc80]

If there is a loss, then you can use it as a capital loss. I don't suggest you to sell everything because you don't know what your future holds in Canada. In fact, many immigrants come here only to realized that they could not find job in Canada or Canada is unsuitable for them. Upon their return, they realized that property prices had rose so significantly in their home country and they cannot afford to live in similar size accommodation before they moved to Canada and had to live in smaller flats.

THANKS FOR YOUR TIME AND EFFORT TO ANSWER MY QUESTION , I WOULD TAKE YOUR ADVISE AND NOT SELL NOW , BUT IF I FIND JOB AND WANT SELL LATER , DO I HAVE TO PAY TAX WHEN I TRANSFER MONEY ?

THANKS

 

[PMM]

Hi

THANKS FOR YOUR TIME AND EFFORT TO ANSWER MY QUESTION , I WOULD TAKE YOUR ADVISE AND NOT SELL NOW , BUT IF I FIND JOB AND WANT SELL LATER , DO I HAVE TO PAY TAX WHEN I TRANSFER MONEY ?

THANKS

1. You should have a valuation of the property just before you "land". When you sell in future date, the difference between the valuation and the selling price, is capital gains, which has to be reported on your income tax in Canada. Capital gains in Canada is taxed at 50% of your tax rate. For example if your tax rate in Canada is 22% then capital gains is taxed at 11%.

To give you a concrete example. Your house is worth $100K when you emigrate. 5 years later you sell it for $120K, so your capital gain is $20K. But in Canada as Capital gain is only taxed at 50%, you would only be taxed on $10K

 

[cooldoc80]

Hi


1. You should have a valuation of the property just before you "land". When you sell in future date, the difference between the valuation and the selling price, is capital gains, which has to be reported on your income tax in Canada. Capital gains in Canada is taxed at 50% of your tax rate. For example if your tax rate in Canada is 22% then capital gains is taxed at 11%.

To give you a concrete example. Your house is worth $100K when you emigrate. 5 years later you sell it for $120K, so your capital gain is $20K. But in Canada as Capital gain is only taxed at 50%, you would only be taxed on $10K

THANKS MAN


SO I SHOULD ESTIMATION AND GIVE TO WHOM WHEN I LAND ?

WHAT IF THE PRICE STAYS THE SAME OR EVEN GETS LESS ?

DO I HAVE TO ACKNOWELEDGE SOMONE OR ITS SOMTHING I DO WHEN I FILE TAXES ?

 

[steaky]

THANKS MAN


SO I SHOULD ESTIMATION AND GIVE TO WHOM WHEN I LAND ?

WHAT IF THE PRICE STAYS THE SAME OR EVEN GETS LESS ?

DO I HAVE TO ACKNOWELEDGE SOMONE OR ITS SOMTHING I DO WHEN I FILE TAXES ?

You don't give to anyone when you land. Instead, you would have to report it in your tax return. If the price stays same or even less, your gain would be zero or have a loss. I suggest you hire an accountant to help you file your first tax return.

 

[Mohtasim]

When u land first time at the port of entry (usually airport) u need to declare what you are bringing at that moment and later on (make a proper list with quantity of item and price in CAD), in that list u can mention the cash or gold or any other valuable like car or furniture if any with value in CAD. That list will be stamped by customer officer and will give u the total valve of your assets in CAD in that case you can bring any thing mentioned on that page. people do shipment their goods after they landed sometime they ship furniture and cars also by sea cargo. All those things mentioned in the stamped list would be tax free but there is a time limit of 6 months as far as i know to bring all stuff.

If you will transfer money through electronic way and citi bank and TD bank are different then they apply tax or transfer fee which will be huge in your case of 70 thousand.

you can open citi bank account here that might help u in reducing the transfer.