Funds in Canadian Account

[Lights 56]

What should I do with the funds I currently have in my canadian bank account? I believe we can only transfer $10,000 at a time, or we're subject to tax? I read that there was a law that was passed that any funds in any accounts in any countries with an amount of over $10,000 will need to be reported to US (I think it was called Fbar?).

I'm in the process of selling my home and just wondering what I need to do. I hope to sell it before I move, so I'm not subject to double taxes. Unless, I'm mistaken? It is my primary residence, so I wouldn't be claiming capital gains or losses.

[JohnR! 5,495]

What should I do with the funds I currently have in my canadian bank account? I believe we can only transfer $10,000 at a time, or we're subject to tax? I read that there was a law that was passed that any funds in any accounts in any countries with an amount of over $10,000 will need to be reported to US (I think it was called Fbar?).

I'm in the process of selling my home and just wondering what I need to do. I hope to sell it before I move, so I'm not subject to double taxes. Unless, I'm mistaken? It is my primary residence, so I wouldn't be claiming capital gains or losses.

There is no tax for bringing the money to the US and electronic transfer is always a good idea. The only requirement is that you must declare any transactions in excess of $ 10K - so even if you were to transfer in two installments of $5K you would still be required to report it, by law. The main reason i would suggest an electronic transfer is because you will have to show evidence of the origin of the money - this is part of anti money laundering laws. There is no tributary burden on bringing the money to the US and there is no limit - it is your money and you can do as you please. However, keeping all these records and evidence of the provenance of the funds will help you show it is derived from the sale of your home, and if you purchase another home in the US you most likely will not be taxed.

[ricnally 258]

I don't think you actually have to report it if you're going from bank to bank. The bank does the reporting, I believe.

[Lights 56]

I have to figure out where I read it… but something about FBAR, where if I kept currency in another account (say one in Canada), that the IRS will make me disclose or report that information?

The only reason I ask is because I would like to transfer some of my $$ to my US account, but keep some in my Canadian account. I have several 'bills' that I'm locked into (like my life insurance) that needs to be paid in a Canadian account. I'll also be traveling often back and forth (I'm not too far from home, even when I move to the US) to visit family. I'll likely only keep $5000-$10,000 in my canadian account and transfer the rest.

[NikLR 13,227]

You do have report 10k or more and rrsps etc on your US taxes when they're in foreign accounts. Accounts that earn interest also need to be reported if they earn interest.

[serena28 2]

I am not sure about the tax implications but if you're looking for QUICK transfers across borders for amounts >10,000 then you should go with TD cross border banking.

TD will allow you to transfer up to $25,000 within 24 hours and you can have those funds in your account the same day if you call before noon to schedule the transfer. Only important thing to note is that both the Canadian and US account must be in your name. Thats how I pay my bills in Canada if I have to make transfers in my Cdn account. Also, the US TD account is FREE as long as your $100 in your US TD acct at all times.

http://www.tdcanadatrust.com/products-services/banking/cross-border-banking/index.jsp

[serena28 2]

Actually you can transfer up to $100,000 daily!

Get no-fee wire transfers⁴ of up to $100,000 daily between your Canadian and U.S. based TD accounts over the phone.

And no one in US will give you as good exchange rates on wire transfers as TD will. I know the currency difference isn't THAT much but when you are transferring SO much money, then it does make a difference.

Good Luck!

[Rob & Monika 87]

Not only does the US bank report the transfer between the foreign and US bank, starting in July this year, foreign banks will have to report foreign assets to the IRS for US citizens and residents. It's all automated now. You only need to personally report what the IRS can't already see, like carrying over a wad of cash.

[warlord 72]

You do have report 10k or more and rrsps etc on your US taxes when they're in foreign accounts. Accounts that earn interest also need to be reported if they earn interest.

http://bsaefiling.fincen.treas.gov/NoRegFBARFiler.html

Yes this is what the FBAR is for. Is for things mentioned like the RRSPs and other funds etc.

I have to do this each year myself. You just have to post the highest amount through the quarterly statements in a given year, or if you only get one amount statement at the end of the year, you enter that number in.

I actually learned about all this 2 years ago and never had done it before. I had to amend all my taxes back to when I became a USC years back. It was a giant pain in the ###. Good thing I didn't have to go back to when I first moved here almost a decade before or I would still be amending them