Moving to Canada - Bringing money/paying taxes

[Giorgio]

I will be moving to Toronto on february 2015 and have some doubts about bringing money.

1. I know I can bring any amount of money with me the first time I arrive to Canada and it will be non-taxable. Other than cash, how can I bring this money with me?

2. I have a condo and vehicles in my country which I am trying to sell:
a) In case I sell them after arriving to Canada and transfer the money to my canadian bank account, will I have to pay taxes for this money?
b) Should I declare that I own this properties and specify their values as soon as I arrive to Canada? Where do I declare this, is there a form?

Thanks a lot for any information you can provide.

 

[steaky]

1) Telegraphic transfer, demand draft, bank draft and other monetary instruments. Declare if value greater than $10,000;
2) Be sure to indicate those in your tax return including capital gains (losses) as a result of disposing your condo and vehicles outside Canada.

 

[Hasni]

Hi steaky,
I didn't bring all of my money first time when I lanede back in Nov'2013. But now as I plan to move for goods in few months,so I will transfer all my savings to canada. Further I haven't stayed 183 days in 2014 in Canada. Would the money I transferred earlier and will transfer now be taxable !
I have moved my family there three months ago,and I have ontario G as well. Please suggest

 

[Giorgio]

Thank you steaky for your feedback. Could you please elaborate a bit more about the second point? I don't have much knowledge about this matter...

 

[steaky]

@ Hasni:

Money transferred is not taxed. Only income and capital gains (as mentioned above) will be taxed.

@ Glorgio:

http://www.cra-arc.gc.ca/E/pub/tg/t4037/t4037-e.html

 

[Hasni]

@ Hasni:

Money transferred is not taxed. Only income and capital gains (as mentioned above) will be taxed.

@ Glorgio:

http://www.cra-arc.gc.ca/E/pub/tg/t4037/t4037-e.html

thanks Steaky

 

[Suin]

some useful info:

Chapter 6 - Principal residence
When you sell your home, you may realize a capital gain. If the property was your principal residence for every year you owned it, you do not have to report the sale on your income tax and benefit return. However, if at any time during the period you owned the property it was not your principal residence, you may have to report all or part of the capital gain.

This chapter explains the meaning of a principal residence, how you designate a property as such, and what happens when you sell it. It also explains what to do in other special tax situations.

If after reading this chapter you need more information, see Income Tax Folio S1-F3-C2, Principal Residence.

http://www.cra-arc.gc.ca/E/pub/tg/t4037/t4037-e.html#P4266_152355

 

[Hasni]

some useful info:

Chapter 6 - Principal residence
When you sell your home, you may realize a capital gain. If the property was your principal residence for every year you owned it, you do not have to report the sale on your income tax and benefit return. However, if at any time during the period you owned the property it was not your principal residence, you may have to report all or part of the capital gain.

This chapter explains the meaning of a principal residence, how you designate a property as such, and what happens when you sell it. It also explains what to do in other special tax situations.

If after reading this chapter you need more information, see Income Tax Folio S1-F3-C2, Principal Residence.

http://www.cra-arc.gc.ca/E/pub/tg/t4037/t4037-e.html#P4266_152355

thanks Suin, for sharing the info

 

[Giorgio]

Thank you steaky and Suin for the info, it was very helpfull.

 

[Thinkin]

This post is very informative and would just like to clarify my understanding on wiring money to Canada after permanently moving to Canada. We (my wife and I) became Canadian landed immigrants in April 2014 and shortly after that we returned to the US. Now in 2016-17 we are thinking of moving to Canada for good. As per the PR requirements we have until April 2017 to permanently move into Canada. Now we are thinking from a tax point of view when it would be best for us to move into Canada. We own a house in the US and thinking may be better to sell the house and wire the money after opening a bank account in Canada (so would need to come into Canada before permanently moving to open an account unless we can do that from the US somehow). So far in terms of Canadian possessions, all we have are our PR cards, SIN number and a mail box that we are renting. We would like to avoid/minimize the taxes we will be paying on the money we will be wiring to settle in Canada. One thing I have inferred is if we wire the money into Canada in a year when we are considered as non-residents by the CRA we don't have to pay any taxes. Definition of non-residents as per the CRA website is "You are a non-resident for tax purposes if you:
normally, customarily, or routinely live in another country and are not considered a resident of Canada; or
do not have significant residential ties in Canada; and
you live outside Canada throughout the tax year; or
you stay in Canada for less than 183 days in the tax year."

Keeping in mind the above definition of non-resident by the CRA, please confirm whether my understanding of tax implications of wiring money and settling in Canada are correct. See my moving options below and give your valuable feedback:
MOVING OPTION1: We sell the house in US and wire the money into Canada in 2016 (assuming physical presence in Canada is less than 183 days in 2016), then I think from a tax purpose we would be considered non-resident in 2016 and would not have to pay any taxes on the wired money. Is my understanding correct?
MOVING OPTION2: If we wire the money into Canada in early 2017 and move into Canada. Now that we will be staying in Canada permanently, so in 2017 we would be considered residents as per CRA (assuming more than 183 days stay in 2017, which I think would be the case). So here the money wired (in 2017) would be taxed as we are considered residents for tax purpose. Is my understanding correct?

So from a tax point of view I would not have to pay taxes if I wired money in 2016 and would have to pay taxes if I wired the money in 2017 (keeping in mind the assumptions mentioned above). Is my analysis correct? In other words is Moving Option 1 better than Moving Option 2 from a tax point of view?

 

[cooldoc80]

This post is very informative and would just like to clarify my understanding on wiring money to Canada after permanently moving to Canada. We (my wife and I) became Canadian landed immigrants in April 2014 and shortly after that we returned to the US. Now in 2016-17 we are thinking of moving to Canada for good. As per the PR requirements we have until April 2017 to permanently move into Canada. Now we are thinking from a tax point of view when it would be best for us to move into Canada. We own a house in the US and thinking may be better to sell the house and wire the money after opening a bank account in Canada (so would need to come into Canada before permanently moving to open an account unless we can do that from the US somehow). So far in terms of Canadian possessions, all we have are our PR cards, SIN number and a mail box that we are renting. We would like to avoid/minimize the taxes we will be paying on the money we will be wiring to settle in Canada. One thing I have inferred is if we wire the money into Canada in a year when we are considered as non-residents by the CRA we don't have to pay any taxes. Definition of non-residents as per the CRA website is "You are a non-resident for tax purposes if you:
normally, customarily, or routinely live in another country and are not considered a resident of Canada; or
do not have significant residential ties in Canada; and
you live outside Canada throughout the tax year; or
you stay in Canada for less than 183 days in the tax year."

Keeping in mind the above definition of non-resident by the CRA, please confirm whether my understanding of tax implications of wiring money and settling in Canada are correct. See my moving options below and give your valuable feedback:
MOVING OPTION1: We sell the house in US and wire the money into Canada in 2016 (assuming physical presence in Canada is less than 183 days in 2016), then I think from a tax purpose we would be considered non-resident in 2016 and would not have to pay any taxes on the wired money. Is my understanding correct?
MOVING OPTION2: If we wire the money into Canada in early 2017 and move into Canada. Now that we will be staying in Canada permanently, so in 2017 we would be considered residents as per CRA (assuming more than 183 days stay in 2017, which I think would be the case). So here the money wired (in 2017) would be taxed as we are considered residents for tax purpose. Is my understanding correct?

So from a tax point of view I would not have to pay taxes if I wired money in 2016 and would have to pay taxes if I wired the money in 2017 (keeping in mind the assumptions mentioned above). Is my analysis correct? In other words is Moving Option 1 better than Moving Option 2 from a tax point of view?

this is a very interesting thought ( thinkin) , i'm in the same puzzle , i think you are right .
because if you wire money same year you are settling in canada then this Maybe considered as an income , so i think its better if you wire it the year before (2016)

BUT STEAKY said somthing important , that is if you wire money which is income or capital gain then you should pay , otherwise you shouldnt ?

thanks

 

[francaispourquebec]

I landed in Canada a few years ago but moving permanently very soon. I am in the process of wire transferring my money (>10,000 CAD) from the US to my Canadian bank account. I don't plan to carry huge amounts of hard cash as such. Do I need to declare my wired money to Customs? Do I need to show my bank statements or the wire transfer details? I just want to make sure this does not get taxed when I file taxes for the first time. Any guidance is welcome.

 

[steaky]

I landed in Canada a few years ago but moving permanently very soon. I am in the process of wire transferring my money (>10,000 CAD) from the US to my Canadian bank account. I don't plan to carry huge amounts of hard cash as such. Do I need to declare my wired money to Customs? Do I need to show my bank statements or the wire transfer details? I just want to make sure this does not get taxed when I file taxes for the first time. Any guidance is welcome.

No need to declare the wire transfer to customs.

 

[royjaishil]

Hi,
I'm writing to verify few things with. I'm migrating to Canada in July 2019. I'm originally from Fiji. Now since I will be migrating, I will also need my money from Fiji to be transferred accross to Canada. I do not have a bank account yet in Canada, though I have my wife's account who is already a permanent resident of Canada. I have spoken to her bank customer care at ATB regarding this wire transfer and the bank has no issues from there end. I also spoke with my bank in Fiji and they have no problem either with this transfer.

CBSA has also mention that I do not have to declare this since it will be wire transfer. I will not be carrying any money on my arrival except for few hundred dollars ($500 Canadian). My wire transfer amount will be CND 60,000. My bank said they will have this stamped at the back of my passport page declaring the amount being wire transferred. All this money are from my own salary savings.

Now my question is will I be charged any tax on this by CRA. Note I do not have a bank account yet in Canada and this will be transferred to my wife's account and later be transferred to my bank account after I open one.

Thanks and looking forward to hearing from anyone with a positive response.

 

[canuck_in_uk]

Hi,
I'm writing to verify few things with. I'm migrating to Canada in July 2019. I'm originally from Fiji. Now since I will be migrating, I will also need my money from Fiji to be transferred accross to Canada. I do not have a bank account yet in Canada, though I have my wife's account who is already a permanent resident of Canada. I have spoken to her bank customer care at ATB regarding this wire transfer and the bank has no issues from there end. I also spoke with my bank in Fiji and they have no problem either with this transfer.

CBSA has also mention that I do not have to declare this since it will be wire transfer. I will not be carrying any money on my arrival except for few hundred dollars ($500 Canadian). My wire transfer amount will be CND 60,000. My bank said they will have this stamped at the back of my passport page declaring the amount being wire transferred. All this money are from my own salary savings.

Now my question is will I be charged any tax on this by CRA. Note I do not have a bank account yet in Canada and this will be transferred to my wife's account and later be transferred to my bank account after I open one.

Thanks and looking forward to hearing from anyone with a positive response.

https://www.canadavisa.com/canada-immigration-discussion-board/threads/new-immigrant.635499/