Bringing funds into Canada

[Thinkin]

My wife and I became Canadian PRs in 2014, and then returned to US. We have till early 2017 to move to Canada to maintain our residency. Realize time is short and in this short time will need to sell house in US and start moving. We have no bank account in Canada as of now. Can someone give me tips on best way I can bring money into Canada from US?

 

[Andynd1uk]

My wife and I became Canadian PRs in 2014, and then returned to US. We have till early 2017 to move to Canada to maintain our residency. Realize time is short and in this short time will need to sell house in US and start moving. We have no bank account in Canada as of now. Can someone give me tips on best way I can bring money into Canada from US?

If you became Canadian Permanent Residents in 2014 then you should have no problem obtaining a Canadian bank account and transferring your American funds to a Canadian bank account. You can use your American bank account in Canada but this will incur a charge each time you use it. When you come back to Canada the CBSA will ask you about funds, just be honest and say you plan to open a Canadian bank account but currently you do not have one and tell the CBSA what your funds accumulate to.

 

[Thinkin]

If you became Canadian Permanent Residents in 2014 then you should have no problem obtaining a Canadian bank account and transferring your American funds to a Canadian bank account. You can use your American bank account in Canada but this will incur a charge each time you use it. When you come back to Canada the CBSA will ask you about funds, just be honest and say you plan to open a Canadian bank account but currently you do not have one and tell the CBSA what your funds accumulate to.

So once I am in Canada, I should return to America (perhaps on a visitor visa) to do the bank transfer?

Also, the funds (which I would be transferring to my Canadian bank account) in the US American bank that I will be declaring to the CBSA officer during my move, would it be considered tax free in Canada? Part of the money would include money obtained by selling my small house in America before I move to Canada. My concern is would these be considered as a part of the worldwide income per calendar year that residents have to pay?

 

[Andynd1uk]

So once I am in Canada, I should return to America (perhaps on a visitor visa) to do the bank transfer?

Also, the funds (which I would be transferring to my Canadian bank account) in the US American bank that I will be declaring to the CBSA officer during my move, would it be considered tax free in Canada? Part of the money would include money obtained by selling my small house in America before I move to Canada. My concern is would these be considered as a part of the worldwide income per calendar year that residents have to pay?

I'm pretty sure it'll be tax free, this isn't America, our money is our money. You don't have to return to America to do the bank transfer, the wonders of the Internet has enabled us to do everything digitally these days.

 

[Thinkin]

I'm pretty sure it'll be tax free, this isn't America, our money is our money. You don't have to return to America to do the bank transfer, the wonders of the Internet has enabled us to do everything digitally these days.

Great. Thank you so much Andynd1uk.

 

[canuck_in_uk]

So once I am in Canada, I should return to America (perhaps on a visitor visa) to do the bank transfer?

Also, the funds (which I would be transferring to my Canadian bank account) in the US American bank that I will be declaring to the CBSA officer during my move, would it be considered tax free in Canada? Part of the money would include money obtained by selling my small house in America before I move to Canada. My concern is would these be considered as a part of the worldwide income per calendar year that residents have to pay?

You don't need to declare your bank balance to CBSA. They are only interested in money that you are physically carrying across the border.

You will not be taxed on income earned worldwide before you become resident in Canada. Be sure to sell your house before returning to Canada so that you avoid capital gains.

 

[Thinkin]

You don't need to declare your bank balance to CBSA. They are only interested in money that you are physically carrying across the border.

You will not be taxed on income earned worldwide before you become resident in Canada. Be sure to sell your house before returning to Canada so that you avoid capital gains.

Thank you so much canuck_in_uk

 

[Thinkin]

You don't need to declare your bank balance to CBSA. They are only interested in money that you are physically carrying across the border.

You will not be taxed on income earned worldwide before you become resident in Canada. Be sure to sell your house before returning to Canada so that you avoid capital gains.

How is a resident of Canada defined for tax pusposes? I mean is it considered the time I open a Canadian bank account etc? The reason I ask is before I fully move into Canada, suppose I visit Canada to attend a job interview (before I sell my house) and return to US to windup, would this entry be considered as the time I became a resident for tax purposes?

 

[canuck_in_uk]

How is a resident of Canada defined for tax pusposes? I mean is it considered the time I open a Canadian bank account etc? The reason I ask is before I fully move into Canada, suppose I visit Canada to attend a job interview (before I sell my house) and return to US to windup, would this entry be considered as the time I became a resident for tax purposes?

There is no strict definition. Basically, it's when you establish ties to Canada. Coming for a job interview will not make you a resident.

 

[Thinkin]

You don't need to declare your bank balance to CBSA. They are only interested in money that you are physically carrying across the border.

You will not be taxed on income earned worldwide before you become resident in Canada. Be sure to sell your house before returning to Canada so that you avoid capital gains.

Also, suppose I don't transfer all the funds from my US bank, will that balance in the US have any tax implications in Canada?

 

[canuck_in_uk]

Also, suppose I don't transfer all the funds from my US bank, will that balance in the US have any tax implications in Canada?

If you earn interest on the money in the US, you will need to include that in your Canadian tax return.