lookingtogo

OK I understand that even on work visas, one can be a tax resident in Canada

a- What is acceptable evidence or documentation for valuing assets at the entry into Canada. Does it have to be a valuation performed the same day/month etc

Eg. for property, how will Canada value this (taken as having acquired property at X CAD)

Is a real estate opinion/email enough or do you have to get formal valuations?

b- For inheritances, say these are not taxable in the home country due to no death taxes. However, will Canada tax these?

c-Do people do these foreign income and asset returns on their own, or is an accountant necessary?

JonboyE

The tax value in Canada is the fair market value on the day you become tax-resident here coverted to Canadian dollars at the Bank of Canada exchange rate that day.

A formal written appraisal by a qualified surveyor is bullet proof. Lesser evidence like a letter from an estate agent will probably be good enough. I would want something in writing for my own peace of mind. That said, the CRA will quite likely accept your return as filed, especially if it is accompanied by a large cheque.

No inheritance tax in Canada. It is all yours to keep.

You can do it yourself.

lookingtogo

Very helpful. Thank you Jon.

To clarify the inheritanec point:

If I inherit an asset in the UK which is tax free (in the UK), Canada will also deem it tax exempt (foreign income/asset tax exempt) - is that correct?

JonboyE

There is no tax on the acquisition of the asset. Its tax cost in Canada is its fair market value on the day you inherit it, converted at the exchange rate that day. Any income or gain from the asset after you have inherited it is taxable in Canada. It is also potentially reportable on a T1135.

lookingtogo

Ahh I see. Thank you again Jonboy. Interesting - and awful!