justie

Hi

Its been a while since i've been on here, trying to patiently wait to sell our house! Not!
We shall be landing in May. As we haven't yet sold our house it will be a matter of gathering together the necessary funds for landing. i think i am right in thinking that everything we take including money is tax free. Is there a limit on this amount? With this in mind do we have to declare equity in our house on landing. When we sell our house at a later date that is after we have activated our residency & declared goods to follow will this equity remain tax free or is it essential to declare on landing.
I hope i'm making myself understood, thanks for any feedback from those who have been there done that.



Justie

james.mc

justie

As nobody has responded yet I'll have a bash.

Yes, what you take on 'landing' is not taxable. As far as I am aware there is no limit, (anyone beg to differ?) but you should declare anything over CAN$10,000 to customs. As a back up, I'd suggest you should be able to prove that the funds were legally obtained, so if you bring in a large amount you might wish to carry supporting paperwork as to where the funds came from, e.g. photo copies of savings account statements etc.

Declare the equity in your house by way of a more than one valuation and current mortgage statement. If the house is sold you will not be taxable on the equity you declared on landing, but may be taxable on any amount over the value originally declared.

justie

Thanks James
I'll make sure i include evidence of house equity for landing, thanks for your comment.

justie

JonboyE

When you land you need to be able to prove that you have the minimum landing funds readily accessible. You are not always asked for this but sod's law says you will be if you don't have the proof. Bank statements are OK. You don't need to have cash. However, is has to be in usable funds so house equity does not count.

If you do carry cash or other cash equivalent (e.g. a bank draft) of more than $10,000 then you must declare it to customs. You do not pay any tax on it.

All your personal effects that you have owned and used before moving to Canada, and all your funds, are tax free at the point you become tax-residents of Canada.

If you have not sold your house you should have some form of valuation. A copy of the estate agent's listing will probably suffice. If you subsequently sell the house for more than its value on the day you landed then you could have a capital gain. However, if you are struggling to sell now then it is likely to sell for less rather than more so this will probably not be an issue.

justie

Thanks for that, appreciate the clarification.