Selling Flat: Before/During/After Move
#1
Forum Regular
Thread Starter
Joined: Feb 2011
Location: Essex
Posts: 65
Selling Flat: Before/During/After Move
Hi All,
closing in on COPR and making the big move, my flat is going on the market and i expect to have about £80k after the sale.
chances are it won't sell before I move, so it will get paid into a UK bank account, where I will leave it until the pound gets better against the dollar and just move over small quantities as and when needed if i have to go beyond my savings for emergencies.
1) If it sells after i activate my COPR do i have to pay a tax in Canada, or as it is an asset that I will put on my "Goods to follow" as a conveyance am i ok?
2) is there any problem with leaving it in the Uk and awaiting a better exchange, any additional tax, i know i have to declare large amounts coming in, but can anyone foresee a problem with my plan i naively cant?
closing in on COPR and making the big move, my flat is going on the market and i expect to have about £80k after the sale.
chances are it won't sell before I move, so it will get paid into a UK bank account, where I will leave it until the pound gets better against the dollar and just move over small quantities as and when needed if i have to go beyond my savings for emergencies.
1) If it sells after i activate my COPR do i have to pay a tax in Canada, or as it is an asset that I will put on my "Goods to follow" as a conveyance am i ok?
2) is there any problem with leaving it in the Uk and awaiting a better exchange, any additional tax, i know i have to declare large amounts coming in, but can anyone foresee a problem with my plan i naively cant?
#2
Re: Selling Flat: Before/During/After Move
Problem? Not as such. There is however the 'consideration' that from the day you land as a settler, your GBP holdings are valued at the Bank of Canada exchange rate for that day. Then any FOREX gains that you realise when you transfer money into Canada from then onwards are subject to Canadian Capital Gains tax. You must also declare ALL assets and holdings whether overseas or not on your first Canadian tax return.
#3
Joined: Sep 2008
Posts: 12,830
Re: Selling Flat: Before/During/After Move
If you have under $250k there is now simplified reporting. Over 250 it is more detailed. Not everything has to be reported in the first year, but be careful not to miss anything that does. The penalties are high. My suggestion is to hire an accountant to help you (avoid tax preparers, they may not be accountants).
Liability for tax in Canada is from when you become a tax resident in Canada, nothing to do with immigration status. You can be a tax resident as a visitor under certain circumstances.
As far as reporting under Fintrac, if you bring money in through a bank, they do the reporting on everything over $10,000. Under that no reporting necessary, other than to tax authorities if it is taxable as income or CG.