bringing money into canada
#1
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Location: Devon Alberta
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bringing money into canada
Quick question, when we sell our house in England and money sent over to our account here in Canada, are we taxed on it????
#2
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Location: Derbyshire
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Re: bringing money into canada
Not if you declared it on your original landing documents as money you are bringing into Canada.
We still have a house to sell in the UK. I included the equity in the amount we are bringing.
I dont think there is a time limit to it, but not sure.
We still have a house to sell in the UK. I included the equity in the amount we are bringing.
I dont think there is a time limit to it, but not sure.
#3
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Re: bringing money into canada
There is another quirk here. When you come to Canada, the exchange rate is fixed at the prevailing noon rate on the date that you land. If you transfer your money on a different date, you may be liable for a capital gain or a capital loss depending if the rate has moved in your favour or against you on that date. A capital gain of course, must be declared for tax purposes. You would also want to keep a record of any capital losses to offset against future gains.
#4
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Re: bringing money into canada
Is that not money you declare when becoming a resident for tax purposes rather than landing? We were just asked how much cash we had on us when we landed - we were returning to UK.
#5
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Location: White Rock BC
Posts: 11,682
Re: bringing money into canada
If you send the money after you have moved here the, as Johnh009 said, you may have a taxable capital gain or allowable capital loss if the exchange rate is different from the rate on the day you moved here.
If you sell the house after you move to Canada you may also have a capital gain/loss based on the difference between the market value of the house when you moved and the sale price you achieved.
#6
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Location: Morris Park, New York
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Re: bringing money into canada
i hear ther e are ways around the tax prob....not that id know 'bout this stuff....i's down to me last few coppers.
Last edited by christmasoompa; Feb 14th 2011 at 3:37 pm. Reason: Not appropriate, save it for The Maple Leaf.
#7
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Re: bringing money into canada
If you send the money to Canada before you move here then no.
If you send the money after you have moved here the, as Johnh009 said, you may have a taxable capital gain or allowable capital loss if the exchange rate is different from the rate on the day you moved here.
If you sell the house after you move to Canada you may also have a capital gain/loss based on the difference between the market value of the house when you moved and the sale price you achieved.
If you send the money after you have moved here the, as Johnh009 said, you may have a taxable capital gain or allowable capital loss if the exchange rate is different from the rate on the day you moved here.
If you sell the house after you move to Canada you may also have a capital gain/loss based on the difference between the market value of the house when you moved and the sale price you achieved.
#8
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Re: bringing money into canada
Yes, you have been given the right advice. The lump sum is tax-free under UK law, not Canadian. If you receive it after you have become tax-resident in Canada it is taxable income here.
#9
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#10
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Re: bringing money into canada
My OH will complete his landing trip end of March then return to England for about 6 to 8 wks. before returning to Canada to stay. At this point we are not sure if he will receive his lump sum tax free portion of his pension before he leaves on his final trip. If not, it will be sent to our Canadian address a few wks later. He could put off applying for a S.I.N. until he receives it or is it best to wait it out until he gets it there?
Could he record this amount on his goods to follow list, and if he has not recieved it, just have it sent to Canada? Does that cover the tax problem?
#11
Joined: Aug 2005
Posts: 14,227
Re: bringing money into canada
Could you please explain to me at exactly what point do you become a "tax-resident in Canada"
My OH will complete his landing trip end of March then return to England for about 6 to 8 wks. before returning to Canada to stay. At this point we are not sure if he will receive his lump sum tax free portion of his pension before he leaves on his final trip. If not, it will be sent to our Canadian address a few wks later. He could put off applying for a S.I.N. until he receives it or is it best to wait it out until he gets it there?
Could he record this amount on his goods to follow list, and if he has not recieved it, just have it sent to Canada? Does that cover the tax problem?
My OH will complete his landing trip end of March then return to England for about 6 to 8 wks. before returning to Canada to stay. At this point we are not sure if he will receive his lump sum tax free portion of his pension before he leaves on his final trip. If not, it will be sent to our Canadian address a few wks later. He could put off applying for a S.I.N. until he receives it or is it best to wait it out until he gets it there?
Could he record this amount on his goods to follow list, and if he has not recieved it, just have it sent to Canada? Does that cover the tax problem?
#12
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Location: White Rock BC
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Re: bringing money into canada
The day he moves there to live permanently is the date he will become resident for tax purposes. If he plans to return to the UK after landing and spends his time whilst here in temporary accommodation (hotels and such) then he is not yet resident. The way I see it is that if you go by what a reasonable person would consider to be "resident" then you won't go far wrong.
If the amount involved is substantial then it will be worthwhile delaying the final move over until the cheque is safely deposited in his bank account.
#13
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Location: Ontario Canada
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Re: bringing money into canada
Thank you so much. Yes we will make sure that the money is in the bank acct before his final move in the summer, but I don't think it will be in before his landing trip at the end of March. (staying for 2 wks) He will still be employed in England for the 8 wks after before he returns for his final move here. That is when he actually retires. Do you think that would make the tax free lump sum free from being taxed in Canada?
I'm still a bit confused, are you suggesting he cancel his landing trip at the end of March if the tax free lump sum isn't in his acct? or just make sure he has it in his acct before his final trip?
I'm still a bit confused, are you suggesting he cancel his landing trip at the end of March if the tax free lump sum isn't in his acct? or just make sure he has it in his acct before his final trip?
#14
Joined: Aug 2005
Posts: 14,227
Re: bringing money into canada
Thank you so much. Yes we will make sure that the money is in the bank acct before his final move in the summer, but I don't think it will be in before his landing trip at the end of March. (staying for 2 wks) He will still be employed in England for the 8 wks after before he returns for his final move here. That is when he actually retires. Do you think that would make the tax free lump sum free from being taxed in Canada?
I'm still a bit confused, are you suggesting he cancel his landing trip at the end of March if the tax free lump sum isn't in his acct? or just make sure he has it in his acct before his final trip?
I'm still a bit confused, are you suggesting he cancel his landing trip at the end of March if the tax free lump sum isn't in his acct? or just make sure he has it in his acct before his final trip?
#15
Re: bringing money into canada
Not to hijack this thread but we move in 3 months, we landed last year but returned to the UK to finalise things, my wife makes a pre moving trip in April and then we both move in May, could we withdraw our funds and take them with us to Canada and deposit them in our bank accounts there, I know we are required to declare more than $10000 so if we were to take less than $10000 per trip in £'s, could we? And will there be any tax implications???? Also anyone know if our exchange rate is better this way exchanging £'s at a Canadian bank into our account or through a Moneycorp, Hifx, halo etc???