Wired amounts taxable after landing? someone please help me

[tarunkkk]

Hi All,

I am here in Canada since 2011 on PR. For some reason, I never brought my savings from US while landing. Now, I am planning to buy a house and need money. So my question is, I am free to wire any amount from US bank(already taxed savings) to Canadian Bank account? will I have to pay again tax on this money in Canada after wiring?

Can someone please really help me with this information as I am not sure what to do?
Also, is there any limit or better wire it in chunks? 10ks?

Thank you in advance for your help.

 

[steaky]

As long as you have declared those sums of money in your tax returns, then you are free to wire those money from your US bank to Canada.

 

[tarunkkk]

Thank you so much for the reply.
so I will be taxed if I declare that amount in my tax return right?

 

[steaky]

Thank you so much for the reply.
so I will be taxed if I declare that amount in my tax return right?

So you haven't declared that amount in your 2012 and 2013 tax returns yet? Go and fix them first to avoid penalties!

 

[tarunkkk]

Thanks for your reply.

No, I didn't declare as I did bring them in 2013 or 2012 years. If I wire them this year and declare, will I be taxed on the already taxed income in US?

 

[Amadan123]

Hello Tarunkkk,

I hope to just clarify some things that may be confusing:

1) The US savings came from US income earned previously, right? It was most likely taxed by the IRS when you earned this income? If so, these after-tax funds will not be taxed again in Canada when you wire it over. These funds represent earnings that were earned before you were a resident of Canada for tax purposes.

2) Depending on how large your savings are in the US, and when you become a resident of Canada for tax purposes, you may have an obligation to report the savings for informational purposes via a T1135. But there's no way we can comment on this conclusively currently given the level of information provided by you.

3) As long as you are current with your tax reporting with both the IRS and the CRA, you needn't worry about wiring it over in chunks or as a lump-sum.

If you have any more specific questions, please let us know!

Madan Chartered Accountant team
www.madanca.com