Selling property in Canada/possibly buying in US

[KTandTommy 31]

I'm going to eventually talk to a bank advisor about this, but I wanted to hear from people with personal experience - I'm sure lots of people have sold property in Canada. I have a condo here that has just gone on the market... I'll be travelling to Florida on a K1 visa, likely in December. I'm just wondering what the best way is to take the money that I make from my condo down to the States.

We haven't decided if we'll 100% go this route - it depends on what the dollar does. But if it stays above par, we'd like to take that money and buy property in the US.

(If the dollar goes below par, I'll probably just bank it in Canada for the time being - but I'm sure I'll have to pay taxes on it, which will suck)

Any advice?

[Chetsky 5]

I'm going to eventually talk to a bank advisor about this, but I wanted to hear from people with personal experience - I'm sure lots of people have sold property in Canada. I have a condo here that has just gone on the market... I'll be travelling to Florida on a K1 visa, likely in December. I'm just wondering what the best way is to take the money that I make from my condo down to the States.

We haven't decided if we'll 100% go this route - it depends on what the dollar does. But if it stays above par, we'd like to take that money and buy property in the US.

(If the dollar goes below par, I'll probably just bank it in Canada for the time being - but I'm sure I'll have to pay taxes on it, which will suck)

Any advice?

Dont worry too much about the dollar. I'm a home builder in the Tampa area, or should I say was. Now is the time to buy in Florida, just do your research. The propery is depreciated below construction costs in many areas, well makes up the difference in the dollar. Example, a home that would COST me in materials to build 300k would sell for 200k

or even lower. Most properties have lost 50-60% value here. Very good buy but I really think its going to start jumping very soon.

[KTandTommy 31]

Yeah, we've been keeping an eye on things for the last year or so... it still looks like the housing market in Florida is doing pretty good (we're looking at the Clearwater/St Pete area).

Am I going to be taxed on the money that I bring in though? I know I'm allowed to bring in my personal belongings duty free - but does the money I make from the sale of my property count as part of my belongings? And, should I open a Canadian bank account but in US dollars and then just transfer it from here? Or what's the best way to do it?

[codygrace 14]

Depending on how much money you will actually cash out on after paying fees and remaining mortgage if any, it might change how you want to transfer the money. I just asked TD how much it would cost me to wire money to the states today. She said the fee started at $30.00-$80.00. For the amount of money I would like to bring across, I think it's worth paying for the wire. You're allowed to bring the money across the border with you (say via bank draft which is fairly secure), but if it's over $10,000 and I am sure it will be, you will have to claim it. You would only have problems with this if they suspected the money to be "bad," but you're coming in on a visa AND will be able to provide proof that you just sold your condo, so that wouldn't happen. Also, don't let the money sit and do nothing! The exchange is fairly decent right now, I made money on my last transfer. The more you transfer, the better the rate also.. If you're with TD bank, get a money market account, or a select service for the best rates you can get. That's all I got. Sorry.

Edit:// If you get a select service, you get a free US account with it.

If somebody could answer the tax question for me also, that would be super. In my case it's money I've had in investments, not from real estate, and I have paid my taxes on any interest each income tax.

Edited October 15, 2012 by codygrace

[KTandTommy 31]

Okay, that's a good starting place... so either a wire or a bank draft, and I'll have to claim it. And bring proof of selling my condo. Can do!

Awesome - thanks!

[Flames9_RN 358]

Anything over $10,000 just has to be claimed, but doesn't mean its taxed! I used Custom house to transfer over a lot of $$$ and was no big deal! And it was free using their EFT option!!

[codygrace 14]

How'd you end up getting it across the border? I am debating between bank draft or just wiring it.. Better advice?

[Flames9_RN 358]

How'd you end up getting it across the border? I am debating between bank draft or just wiring it.. Better advice?

custom house at 1 time was its own company, centered out of Victoria BC--I walked by its office many times when I lived in Victoria. About 2 yrs ago it was bought out by Western Union. http://onlinefx.westernunion.com/#t=us-daf-customhouse-generic

Not sure if the application process has changed, I'm sure it has ( I started using it in 2005) Not that difficult to do! Just need a Canada bank account and a USA bank acct. I had to scan and email in a few documents (one could fax or snail mail it)

If you do it EFT (electronically file tx) it is FREE and takes 4-6 business days! They do offer a Wire service-- for a fee. Someone told they off a faster free option as well. I'm never in a hurry, so have never bothered! They make their $$$ on the exchange rate! I found it to be a bit better than what the banks offer! If your only tx'ing a smal amount of $$$, not a huge deal, but if you are--wel its well worth it! Well worth to check what ur bank will offer--and what CH offers. No reason to give away $$$$$

[codygrace 14]

Exactly, thanks for more info!

[Krikit 1,164]

Okay, that's a good starting place... so either a wire or a bank draft, and I'll have to claim it. And bring proof of selling my condo. Can do!

Awesome - thanks!

If you have a TD Canada Trust account in Canada, open a TD Bank account in FL. Electronic transfers between the two have no wire transfer or service charges if they're both your accounts. Don't carry a cheque or bank draft in case it gets lost or stolen. You'll also get to avoid having to declare it at Customs. If you do decide to carry it with you then do not, under any circumstances, have it in Canadian funds. It will have to be US.

[KTandTommy 31]

Thanks Krikit... I'm actually with BMO in Canada, and my fiance banks with Wells Fargo... Do you know of anything similar for those two companies, or is it easier to just open a TD account?

Thanks again for the info

[VeeNDee 44]

Thanks Krikit... I'm actually with BMO in Canada, and my fiance banks with Wells Fargo... Do you know of anything similar for those two companies, or is it easier to just open a TD account?

Thanks again for the info

I'm with BMO in Canada as well and last time I went in to take out some USA cash for a visit to my fiance they commented on my doing that more often and suggested opening a US funds account. That way I can transfer money to that account and take out cash and reduce some fees somehow. At any rate I know there is a US funds account at BMO - you can always call their Tele Banking line to ask for more information. They're pretty good at helping.

All the people my fiance knows (and he as well) keep telling me how terrible American banks are and to use a credit union - is it just American banks? I dunno, BMO has been a great experience as a Canadian bank for me but maybe I just got lucky.

[Kathryn41 3,205]

Just remember if you are carrying it with you through the border that you must declare any amount over $10,000 at the border. If you are having it wired to you, you also need to declare the amount and mail in the form. Here is a link to the form: http://www.fincen.go...fin105_cmir.pdf You need to complete this for any amount over $10,000 or any aggregate amounts that are sent below that amount but within a short time period (it is treated as one transaction of the total) that is imported into the US for any reason. You will not be taxed on the amount but you must report it. The consequences of failing to report its import are dire - they generally confiscate the whole amount. Banks will notify US Customs and Border Protection about any amounts that are deposited from a foreign bank whether by transfer or a draft or check so the government will know about the transaction and will contact you if you fail to report it. It is part of their anti-terrorism campaign to identify the source of money entering and leaving the country.

You are also required to declare to the IRS any foreign accounts which have over $10,000 in them as well, for the same purpose. You won't be taxed on the money, but they want to know about it. http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Report-of-Foreign-Bank-and-Financial-Accounts-%28FBAR%29

Edited October 15, 2012 by Kathryn41

[codygrace 14]

Thanks

[Flames9_RN 358]

I'm pretty sure when I used Custom house--they filled out the forms.