Hi friends. We land on 28 of Aug in Vancouver. We own property in Iran that we can't sell now (because of recession) so that money will not be with us when we land. We have enough money to show when we land and it is not the issue. My question is that when we sell that property after one or two year (we will come back to Iran to sell it) and we want to transfer money to Canada at that time do we have to pay 29% income tax on that money? And what should we do the day we land (I don't know if we can declare money that would follow in 2 years? ...) or when we arrive to avoid the tax or reduce it?
Taxes issue in Canada, Seniors please advise
- Thread starter es2ca
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Money being transferred into your account isn't necessarily income, especially when you are transferring it yourself from another account. After I landed in Canada, I transferred a chunk of money from my account back home and I never paid any taxes off that. Once you land in Canada, you should ask your bank about money transfers from other countries and if there are any limits with the amount per transfer, amount per year etc. They should be able to tell you.
idas
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Taxes issue in Canada
When a person becomes a Canadian resident for tax purposes, that person will become subject to Canadian tax on that person's world income from the time Canadian residence is obtained.
In the case of an individual, the taxation year of immigration is, in effect, divided into two parts: the part during which the individual was a non-resident; and the part during which the individual was Canadian resident. It is only the worldwide income that is earned during the second part that is subject to Canadian tax. Income earned during the first part of that year will generally only be subject to Canadian tax if it is derived from Canadian sources.
During the year of immigration normal personal tax credits allowed ("personal amounts") are pro-rated based upon the portion of the calendar year during which the individual was resident in Canada.
Capital property owned at the time of immigration is generally deemed to have a cost for Canadian tax purposes equal to the fair market value of such property on the date that Canadian residency is obtained. The main exception to this rule is the fact that it does not apply to "taxable Canadian property" ("TCP"). The most commonly encountered forms of TCP are real property situated in Canada and shares in private corporations resident in Canada.
For non-residents with significant wealth and/or sources of income it is generally advisable to seek Canadian tax advice before immigration to Canada in order to take steps to minimize the impact of Canadian taxation.
One of the most commonly used planning techniques for immigrants to Canada who have significant wealth is the formation of an "immigrant trust" in a tax-haven jurisdiction. If properly structured, this will allow investment income earned during the first 60 months of Canadian residency to be exempt from Canadian taxation.
http://www.taxca.com/immig.html
When a person becomes a Canadian resident for tax purposes, that person will become subject to Canadian tax on that person's world income from the time Canadian residence is obtained.
In the case of an individual, the taxation year of immigration is, in effect, divided into two parts: the part during which the individual was a non-resident; and the part during which the individual was Canadian resident. It is only the worldwide income that is earned during the second part that is subject to Canadian tax. Income earned during the first part of that year will generally only be subject to Canadian tax if it is derived from Canadian sources.
During the year of immigration normal personal tax credits allowed ("personal amounts") are pro-rated based upon the portion of the calendar year during which the individual was resident in Canada.
Capital property owned at the time of immigration is generally deemed to have a cost for Canadian tax purposes equal to the fair market value of such property on the date that Canadian residency is obtained. The main exception to this rule is the fact that it does not apply to "taxable Canadian property" ("TCP"). The most commonly encountered forms of TCP are real property situated in Canada and shares in private corporations resident in Canada.
For non-residents with significant wealth and/or sources of income it is generally advisable to seek Canadian tax advice before immigration to Canada in order to take steps to minimize the impact of Canadian taxation.
One of the most commonly used planning techniques for immigrants to Canada who have significant wealth is the formation of an "immigrant trust" in a tax-haven jurisdiction. If properly structured, this will allow investment income earned during the first 60 months of Canadian residency to be exempt from Canadian taxation.
http://www.taxca.com/immig.html
idas
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es2ca said:
As far my understanding (i am not an tax attorney
) , You should include your house and it's fair market value in your fist year return, thus you will legally have the said amount as property. And as this property was obtained previous to your being a PR it's non taxable. Now say in second year u sell u'r property and want to transfer the cash to Canada. You will have to pay tax on only the difference amount (Sold amount - Initial assessed amount) as capital gains tax. Hope this clear all the clouds.
idas
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es2ca said:
I think u need to asses the value of the property with a recognized property agent and notarized all document (the original purchase dead, translated copy, property value evaluation and it's translated copy) and u'r tax return copy from Iran just to be safe.
what about the property that we inherit?is it also taxable?
if we inform the authorities on landing in the "goods to follow" B4 form that we will bring the money on selling the property will it not decrease the tax liability. I dont think that on selling the preowned property there should be any tax if the authorities are informed before hand.
if we inform the authorities on landing in the "goods to follow" B4 form that we will bring the money on selling the property will it not decrease the tax liability. I dont think that on selling the preowned property there should be any tax if the authorities are informed before hand.
