What finances to declare
 

Do we only have to show that we meet the criteria of proof of funds (2 adults & 1 child = $17,000.00) or do we have to declare all our savings, we do not want to change any money at the moment due to the exchange rate.

Also we will not be selling our house for sometime do we have to provide proof of its value & will we be taxed on the money when we finally sell it?

Re: What finances to declare
 

You only require to prove you have the necessary amount for entry.

You do not have to mention the value of your UK property. If you own and live in a Canadian property when you sell the UK property I believe the sale "profit" is taxable as a Capital Gain.

Re: What finances to declare
 

For a fsw cat1 'landing' proof of funds can be a savings account statement or similar would be fine you've only have to prove you have the minimum required funds, not your Net Worth . As long as you have acess to funds in liquid form thats fine.
hope this helps

Re: What finances to declare
 

So what if someone declares their Net Worth?

how does that become Canadian-taxable if this money was saved by working outside the country :confused:?

Other thing, what is the case if I saved money while working abroad in tax-free countries and kept the money there but declared that I have this amount to draw from when necesary?

Re: What finances to declare
 

Anything you earned and saved before you became tax resident in Canada is not taxable in Canada. I think what the Auld Yin was mentioning that AFTER you become tax resident in Canada then gains on foreign property are taxable - but only the gain made after you become tax resident.

If you mean declaring this as proof of funds when you land then no problem. As long as the money was earned before you become tax resident in Canada it is not subject to Canadian taxation.

Re: What finances to declare
 

Won't you get tax on any exchange rate gain though. Given the low rate, this is potentially going to be important for those becoming tax resident around now.

Re: What finances to declare
 

Yes, any FX gain you make after you become tax resident is taxable.

Re: What finances to declare
 

Just to understand this better:
If, say, I have USD 200,000 in a bank account in Dubai that I will declare as part of my available funds upon landing, which equals CAD 220,000 at the time, then I convert that amount after few months and they equal CAD 240,000 for example, will the 20K difference be taxable??

Re: What finances to declare
 

Yes, it is considered a capital gain so 50% (i.e. $10,000) is added to your income.

It does not matter whether or not you declare these funds as available on landing - you are required to report any capital gain you make.

You only pay tax on realized capital gains so as long as the money sits in USD it is not taxable (though any interest it earns is). You can avoid any capital gains tax by waiting until the exchange rate falls until the USD200,000 is worth CAD220,000 again. However, why would you. Take the gain while it is there. A gain of $20,000 will cost you around $4,000 in tax and you can stick $16,000 in your back pocket.

Re: What finances to declare
 

Thanks, that explains it well. :)

Re: What finances to declare
 

If the exchange rate was to move against iQ, could a capital loss be declared?

Re: What finances to declare
 

Yes, if the loss is greater than $200.