When you establish residency in Canada, you need to know how the property is worth. When you sell the property at a loss (i.e. the selling price is less than the previous value when you established residency), then no tax payable but you can carry a capital loss for future years.
Bringing money from overseas
- Thread starter desi2012
- Start date
Thnx,,, but it is less likely to get loss on property in my country. What about gifts? Like i have been gifted 2 properties by my mother,there is tax exemption on it?
No.
Any property you own when you become tax resident and sell later will be taxed if they trigger a gain. Prepare enough evidence of the fair market value of those properties at the time you become tax resident.
Since those are overseas properties it would not qualify for your main residence exemption. The way you acquired those properties are irrelevant however, it will impact more the taxation in your country. Again what will matter is proving the FMV when you became a tax resident of Canada. This can be quite hard especially if your property value (for tax) is undervalued. You will want to also determine the cost benefit of maximizing the property value in your country as there will likely be taxes to be paid there too.
This is way too complex to deal with on a forum. The type of property it is will also greatly impact the taxes you will have to pay.
Hey resurrecting the forum for my own question:
My Father in Law is a Bahamas citizen. He has made a lot of money working there for a corporation which pays him incredibly well for his work.
His daughter and I recently had his first and probably only Grandson and he wishes to send us a very large gift. I'm talking multiple six figures big (500k), possibly even seven figures(1,000,000+). He wants to give it all to us and his Grandson so we can flourish.
Several questions:
1) Is gifting us cash from the Bahamas an option for him? His daughter and I are Canada citizens, he is not. He would be gifting it directly to his daughter.
2) Will this incur taxes on our end? I understand he pays no income tax in the Bahamas, unsure how that works with a gift from there.
3) I know banks have limits on how much he can wire in one transfer, and he isn't against doing this multiple times, but would this be problematic legally speaking?
He has consulted several tax specialists in the Bahamas but they have been incredibly vague and want him to pay upfront for their services. There are a lot of untrustworthy practices in his country so he just wants more information. I have scoured the tax laws on the CRA website and Federal Justice Law database but nothing really speaks specifically to this kind of thing. Last thing any of us want to do is incur any kind of legal issues. The money is legit, the corporation is real, he is paid for services both on a per hour and commission basis.
Thank you!
My Father in Law is a Bahamas citizen. He has made a lot of money working there for a corporation which pays him incredibly well for his work.
His daughter and I recently had his first and probably only Grandson and he wishes to send us a very large gift. I'm talking multiple six figures big (500k), possibly even seven figures(1,000,000+). He wants to give it all to us and his Grandson so we can flourish.
Several questions:
1) Is gifting us cash from the Bahamas an option for him? His daughter and I are Canada citizens, he is not. He would be gifting it directly to his daughter.
2) Will this incur taxes on our end? I understand he pays no income tax in the Bahamas, unsure how that works with a gift from there.
3) I know banks have limits on how much he can wire in one transfer, and he isn't against doing this multiple times, but would this be problematic legally speaking?
He has consulted several tax specialists in the Bahamas but they have been incredibly vague and want him to pay upfront for their services. There are a lot of untrustworthy practices in his country so he just wants more information. I have scoured the tax laws on the CRA website and Federal Justice Law database but nothing really speaks specifically to this kind of thing. Last thing any of us want to do is incur any kind of legal issues. The money is legit, the corporation is real, he is paid for services both on a per hour and commission basis.
Thank you!
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Very nice. Your father in law in Bahamas must be making good money. Anyways, every transfer is subject to remittance. When you file your taxes, take advise from accountant firm. That will sort out your problem. By the way, is half a million a very big amount in Canada? I can spend it in a year. I don’t understand why Americas never declared that below million is average class, above two million is middle class, ten million is like moderately rich, and anything above that is rich and super rich.
Good morning, I woke up just now. Besides the above policy, just like how tax is deducted by a bank on interest receivables, when the sender is filling the bank transfer documents, if he files it as gift, then you may be subject to taxes deducted by banks, contact your bank first, then an accountant for any alternatives.