RKS_in_Calgary

so if I were to transfer just less than $100k each tax year, I wouldnt have to declare it? (we have money to transfer to Canada which will form a house downpayment but could do some this year and then the rest next year)

Aviator

No, if you are a Canadian tax resident and have $100,000 or more anywhere in the world, or assets of that value you have to report them on a Canadian tax return as foreign assets every year you hold those assets overseas. Failure to do so can be very expensive.

http://www.jonathaneccleston.com/1/p...ans-guide.html

Any amount of $10,000 or more coming into Canada has to be reported to customs. If it is a bank transfer, the receiving bank reports it.

Every year you have to report any growth in capital, such as interest and pay tax, pay capital gains if a CG is realised or there is a currency gain on the base cost (day you became tax resident in Canada). You can deduct any CG loss from past capital gains.

Aviator

It depends on the source of income. If it was already tax paid, no issues. If any CGT liability arose or income tax these have to be reported on you income tax return. All the banks do is report the funds as part of money laundering prevention.

RKS_in_Calgary

No, if you are a Canadian tax resident and have $100,000 or more anywhere in the world, or assets of that value you have to report them on a Canadian tax return as foreign assets every year you hold those assets overseas. Failure to do so can be very expensive.

oh thanks wasnt aware of that - is this on your tax return? is this regardless of the source?

http://www.jonathaneccleston.com/1/p...ans-guide.html

Any amount of $10,000 or more coming into Canada has to be reported to customs. If it is a bank transfer, the receiving bank reports it.

Every year you have to report any growth in capital, such as interest and pay tax, pay capital gains if a CG is realised or there is a currency gain on the base cost (day you became tax resident in Canada). You can deduct any CG loss from past capital gains.

is this seperate to the world income where you would report interest?

thanks for your help

RKS_in_Calgary

Sorry - one more question - is this $100,000 per person so if UK assets were held in a joint account and transferred into a joint account here then the total a couple could hold before declaring it would be $200,000?

thanks for the weblink BTW

Aviator

By reporting the asset there may or may not be tax implications in the future, but not at the time of reporting it, CRA just want to know about it in case you get rid of it or may ask where you got it. Keep any documentation and the value in CDN$ at the date you became a tax resident. When you dispose of the asset this is where the tax issue may arise. If it is a joint asset, tax liability can be shared between the owners. Penalties for not reporting are high.

There is a spot on you tax return to report this.

Interest is reported in CDN$ along with other interest earned from other sources. There is a box for that.

RKS_in_Calgary

thanks - its from house sale so is joint income - in which case its less than $100,000 each so not reportable. We did report the interest on world income so think we are ok !

Aviator

If it is from a house sale, it is not income. Provided you contributed equally then you should be OK. The proportionate ownership of the foreign property is based on the amount contributed by each person. If the contribution by one person is more than $100,000, that person has to file Form T1135


This is the form for reporting: http://www.cra-arc.gc.ca/E/pbg/tf/t1135/t1135-07e.pdf

RKS_in_Calgary

thanks Aviator, thats really helpful