Disclosing Art & Jewellery Values
Nov 11th 2022, 3:53 pm
#1
Just Joined
Thread Starter
Joined: Nov 2022
Posts: 4
Disclosing Art & Jewellery Values
Hi All,
Recently joined the site. We are immigrating to Canada at the end of the year. I'm British and have PR status, my wfie is a Canadian citizen and although we have lived in the UK for over 12 years together she was previouly living in Canada so I presume that would make her a returning resident?
My question is in regards to delcaring values of items such as art and jewellery.
Do returning residents have to pay tax/duty on items over $10k?
Do you decalre the value of what the item is worth today or when you purchased it?
Also if you were to sell an item when in Canada and had to pay capital gains tax, would this be based on the value you declared at entry or that you purchased in UK years back?
Thank you,
Recently joined the site. We are immigrating to Canada at the end of the year. I'm British and have PR status, my wfie is a Canadian citizen and although we have lived in the UK for over 12 years together she was previouly living in Canada so I presume that would make her a returning resident?
My question is in regards to delcaring values of items such as art and jewellery.
Do returning residents have to pay tax/duty on items over $10k?
Do you decalre the value of what the item is worth today or when you purchased it?
Also if you were to sell an item when in Canada and had to pay capital gains tax, would this be based on the value you declared at entry or that you purchased in UK years back?
Thank you,
Nov 11th 2022, 5:14 pm
#2
Lost in BE Cyberspace
Joined: Nov 2011
Location: Somewhere between Vancouver & St Johns
Posts: 19,849
Re: Disclosing Art & Jewellery Values
When you landed as a PR did you supply CBSA with a list of goods to follow?
I suggest you read these 2 x CBSA Memorandums for goods imported by a former resident of Canada (wife) and you as a settler.
https://www.cbsa-asfc.gc.ca/publicat...2-3-2-eng.html
https://www.cbsa-asfc.gc.ca/publicat...2-2-1-eng.html
Important paragraphs
19. It is suggested that settlers importing valuable pieces of jewellery obtain an appraisal report from a qualified gemologist, jeweler, or from their insurance agent. Such jewellery should be individually identified on the list of goods submitted to the CBSA.
No value limit on settlers goods.
Former residents have a $10,000 restriction on single items
16. If an article meets all the conditions of tariff item No. 9805.00.00 but its value for duty exceeds $10,000, it is not classified under tariff item No. 9805.00.00. Instead, section 84 of the Customs Tariff applies and the article is classified under Chapters 1 to 97 of the Customs Tariff, and its value for duty is reduced by $10,000. Duty and taxes therefore apply only to the portion of the value that exceeds $10,000.
Both memorandums have ownership, possession & use criteria. Basically saying no brand new goods that have not been used with limited exceptions.
I suggest you read these 2 x CBSA Memorandums for goods imported by a former resident of Canada (wife) and you as a settler.
https://www.cbsa-asfc.gc.ca/publicat...2-3-2-eng.html
https://www.cbsa-asfc.gc.ca/publicat...2-2-1-eng.html
Important paragraphs
19. It is suggested that settlers importing valuable pieces of jewellery obtain an appraisal report from a qualified gemologist, jeweler, or from their insurance agent. Such jewellery should be individually identified on the list of goods submitted to the CBSA.
No value limit on settlers goods.
Former residents have a $10,000 restriction on single items
16. If an article meets all the conditions of tariff item No. 9805.00.00 but its value for duty exceeds $10,000, it is not classified under tariff item No. 9805.00.00. Instead, section 84 of the Customs Tariff applies and the article is classified under Chapters 1 to 97 of the Customs Tariff, and its value for duty is reduced by $10,000. Duty and taxes therefore apply only to the portion of the value that exceeds $10,000.
Both memorandums have ownership, possession & use criteria. Basically saying no brand new goods that have not been used with limited exceptions.
Nov 13th 2022, 4:44 pm
#3
Just Joined
Thread Starter
Joined: Nov 2022
Posts: 4
Re: Disclosing Art & Jewellery Values
Dear Former Lancastrian,
Thank you very much for the detailed explaation. i have read the links and still a little confused.
If I purchased my wife an engagment ring that is now valued at say $11,000 - will we have to pay tax on the $1,000 even though it was over 10 years ago and we have been residing in the UK the whole time? If so could I say it was something I still owned?!
Is there someone I can get ofical advice from - is there s phone number/email for the Boarder Services?
Dose anyone have any advice on CGT on items brought over. If an item was purchased in the UK at $500 and valued at $1,000 on entry - If I sold for a profit, would the CGT be based on the level above the origial purchase price of $500 or $1,000? And would the CGT be payable in Canada?
Thank you very much in advace,
Vardster
Thank you very much for the detailed explaation. i have read the links and still a little confused.
If I purchased my wife an engagment ring that is now valued at say $11,000 - will we have to pay tax on the $1,000 even though it was over 10 years ago and we have been residing in the UK the whole time? If so could I say it was something I still owned?!
Is there someone I can get ofical advice from - is there s phone number/email for the Boarder Services?
Dose anyone have any advice on CGT on items brought over. If an item was purchased in the UK at $500 and valued at $1,000 on entry - If I sold for a profit, would the CGT be based on the level above the origial purchase price of $500 or $1,000? And would the CGT be payable in Canada?
Thank you very much in advace,
Vardster
Nov 13th 2022, 11:48 pm
#4
Lost in BE Cyberspace
Joined: Nov 2011
Location: Somewhere between Vancouver & St Johns
Posts: 19,849
Re: Disclosing Art & Jewellery Values
Unless the engagement ring is something like J Lo, Ivanka Trump or some other prominent person may wear and it is very noticeable I wouldn't worry about it. An insured value doesn't mean that is the price you would get for it if trying to sell it.
Contact info found in link below
https://www.cbsa-asfc.gc.ca/contact/bis-sif-eng.html
Contact info found in link below
https://www.cbsa-asfc.gc.ca/contact/bis-sif-eng.html
