Declaring monies and assets at POE

[Steven and Alice 30]

As our CAD drops we are thinking of holding onto our CAD until it recovers a bit (forecast says 2016). For those who are in the same situation as ours and should POE sometime in the summer, how are you handling your CAD?

Are you exchanging straight up and take bank draft with you at POE? I know there are things to follow but I dont think there's monies to follow. If we dont declare the whole amount (that would eventually be in US) at POE then would we get tax on it when we transfer it later? I mean if we take a few hundreds here and there (like EI deposit) its not noticeable but what if it's a large sum?

We dont know if it is feasible but we are thinking if we can take out in CAD and deposit in CAD in US. Still looking at a bank that deals with CAD.

[mallafri76 1,012]

We're in the same boat. The exchange rate between USD and SEK is ridiculous and we would loose thousands of dollars if we transfer the money now.

I have previously transferred money from my Swedish account to my US account and you don't pay tax on it. There's a small fee involved, think it's $16, regardless of how much you transfer. I'd do a bank transfer once the CAD to USD is at a better rate. That way you don't have to carry it with you and declare it at POE and stuff. Plus it's safer.

Sweden has a double tax agreement with the US, I would think Canada has the same, and it means that you can't be taxed on your money twice. So if you've paid tax on it in Canada, you won't pay again in the US.

[Andy&Vanda 8]

We use TD cross border banking which is convenient. We plan to leave CAD in Canada until absolutely needed or CAD achieves parity (or close to).

Another friend of ours just bought a house in Florida and reported a good experience with Knightsbridge for the best rate when transferring larger sums of money. He also has TD, but said the rates with Knightsbridge were much better. I plan to investigate.

Not sure what tax you would be accessed for? And don't forget, as an American filing for Canadian income there is rather large exemption on foreign income earned. About $90K. Hope this helps.

[aaron2020 11,651]

Hi,

Take a look at the historic exchange rate between the U.S. dollar and other currencies. The U.S. has been weakening the dollar for the last 7-8 years. After historic high versus the dollar, the U.S. dollar is strengthening while other currencies are weakening. This is going back to the norm. It's going back to $1.60 CAD to $1 USD. Listen to the economists.

To qualify for the Foreign Earned Income Exclusion, the tax payer has to reside abroad. A US resident does not qualify for the FEIE.

[Steven and Alice 30]

Okay. I'm just concern if we leave our CAD in Canada then transfer when we buy a place in US. There would be tax consequences. I didnt think it would be okay to move monies across without consequences though? I mean if that's the case then why do we need to declare items to follow? We can move any many as we choose like with our monies, right?

[Steven and Alice 30]

We use TD cross border banking which is convenient. We plan to leave CAD in Canada until absolutely needed or CAD achieves parity (or close to).

Another friend of ours just bought a house in Florida and reported a good experience with Knightsbridge for the best rate when transferring larger sums of money. He also has TD, but said the rates with Knightsbridge were much better. I plan to investigate.

Not sure what tax you would be accessed for? And don't forget, as an American filing for Canadian income there is rather large exemption on foreign income earned. About $90K. Hope this helps.

I wish there are Canadian banks in the west coast. TD has some branches in east coast I believe. I am really hoping CAD will get stronger in 2016 as gas price goes back up. My friends told me we will almost always get better rates at third party and not at financial institutes. I will investigate about Knightsbridge too.

Is your friend Canadian? or American? Or Canadian living in US now?

I guess the transfer is not income earned and after tax so there wont be any tax implications? I know the government would know if its a larger transfer (e.g. over 5k or 10k).

[aaron2020 11,651]

Okay. I'm just concern if we leave our CAD in Canada then transfer when we buy a place in US. There would be tax consequences. I didnt think it would be okay to move monies across without consequences though? I mean if that's the case then why do we need to declare items to follow? We can move any many as we choose like with our monies, right?

You can move the money. There is no taxes on the US side.

The U.S. requires its residents to report bank accounts with more than $10,000 USD on an annual basis.

[Flames9_RN 358]

I EFT'd a large sum of $$$ from Canada, no taxes paid on it, but when one transfers over anything over $10,000 the US govt is notified, I think there was a form, but pretty sure Custom House (now western union) took care of that

[Steven and Alice 30]

Okay thank you all!!!

[Flames9_RN 358]

If you keep ur RRSPs back in canada...you have to notify the IRS yearly on IRS tax form 8891....and I believe you have to notify the Canadian bank that holds them...I recall them sending me paperwork to fill out

[CowBoE 429]

As our CAD drops we are thinking of holding onto our CAD until it recovers a bit (forecast says 2016). For those who are in the same situation as ours and should POE sometime in the summer, how are you handling your CAD?

Are you exchanging straight up and take bank draft with you at POE? I know there are things to follow but I dont think there's monies to follow. If we dont declare the whole amount (that would eventually be in US) at POE then would we get tax on it when we transfer it later? I mean if we take a few hundreds here and there (like EI deposit) its not noticeable but what if it's a large sum?

We dont know if it is feasible but we are thinking if we can take out in CAD and deposit in CAD in US. Still looking at a bank that deals with CAD.

With expected fed rate increase starting possibly this year

USD is expected to strengthen further.

They are forecasting USD to be 1:1 with even Euro.

And many countries are actually trying to devalue their money

to improve the profit line on their export biz.

If I was you...I would move most of it to USD, but keep some

in CAD and use it when you travel there.

[canuk2usa 7]

I think this thread is even more relevant now, as CAD has crashed further.

If we convert our CAD savings to USD, we take a huge hit.

It seems the only solution is leave the CAD savings in Canada, and hope we don't need the money in the U.S. in 2016 or 2017.

I called some banks in the U.S. and it seems no U.S. Bank offers CAD accounts.

So let's say you immigrate to the U.S. on January 1, 2016 (say exchange rate is $1usd=.70cad, 30% lower), then in 2018 exchange rate is 1:1, you convert you $100k in savings to USD and transfer to your U.S. BANK. Will you have to pay a capital gains tax off the $30000 increase in value since the day of your green card activation?

Pretty bad situation if that's the case

[Udella&Wiz 325]

I would go ask that in the Serbinski tax forums....you'll geta straight answer there.

[NikLR 13,227]

RBC and TD both have Canadian and US accounts.

As for the other question, I don't know.