Cutting Off Ties To Canada

[madscientist 0]

Hi everyone,

First off, I received my K1 Visa on February 12th at the Vancouver Consulate. There were a lot of nervous people there as well but truthfully I didn't see what the big deal was. I feel unless you are hiding something or did something wrong you really should have no problems. Questions were pretty straight forward asking a lot of questions about my fiancee and her family i.e. what car she drove, how many sibling she has and how old, etc. So I hope this eliminates the butterflys for the people having interviews coming up. They were really pleasant in Vancouver except get there an hour earlier than your appointment so you're not all panicky.

Secondly, I have spoken with a few people who have lived in the States before and they told me to avoid paying Canadian taxes, when I am down in the States, that I should eliminate all ties with Canada which includes selling vehicle(s) or property. I have 2 land titles under my name along with my sister and father and I was thinking of transferring my portion to my sister. I am in the process of selling my vehicle. What has others experiences been with this if any??? I have a close relationship with my sister so I am comfortable transferring my share to her without worrying about anything shady lol.

Thirdly, What are the experiences of with any of you in regards to money in your savings and chequing accounts. Did you just keep the account open in Canada? Did you transfer it over to your fiance(e)'s account? Did you just bring a big bank cheque across the border?

Thank you for your responses. Good luck to all and really don't worry like I said above. In a few days I am off to the City of Angels

[Marilyn. 340]

well, all I did was send in my last tax return stating that I was now living in the US... I had to send it somewhere else though but at the moment I can't remember where.. maybe someone else will know....

and as for bank accounts I left mine open, well actually i shut down my checking account and just left my savings account open.... my mom likes it because it is easy for her to send me money when she wants to...

[Dan J 277]

You could import your car into the US as long as it meets the emissions requirements. You may or may not have to pay a duty on the car. You would also have to drive it to your new home unless you want to pay a shipping company to move it for you.

[Krikit 1,164]

Not sure why you would sell your vehicle as a process to eliminate ties with Canada. When you bring it with you it is no longer in Canada. Unless you have a car loan or you don't want it.

The only thing I know about land titles is from my own experience. I sold my home in Canada after moving to the U.S. Since I sold it in a non-resident status situation, any capital gains would have been taxable. However, since it was my primary residence before my relocation, capital gains did not apply. 30% of the purchase price is withheld in escrow until the lawyer receives an all-clear letter from Revenue Canada. Any outstanding amounts payable will be deducted from those funds prior to RC issuing the release document.

I recommend you call a real estate lawyer before taking any action with regard to transferring land titles to someone else. Circumstances such as sudden death is just one situation which comes to mind.

WRT banking.... at the moment I still maintain my bank account in Canada and used http://www.customhouse.com/ to transfer funds to my account in the US. You receive a far better rate of exchange than depositing a cheque drawn from a bank in Canada. And, in my experience, US Banks have difficulty dealing with Canadian cheques so you're better off avoiding that as much as possible.

Have a safe trip, and congratulations!

Edited March 10, 2007 by Krikit

[Reba 2]

I cashed out my RRSPs, closed all bank accounts, and filed my last tax return in Canada as a non-resident.

I had my bank electronically transfer funds to my US account, and my RRSP I got them to send me cheques. I paid 25% flat rate tax on the RRSP cash outs, and ended up paying a bit on my US taxes that year because of the "income" exceeded the tax rate.

You'll want to check also State laws where you're moving to. The reason I cashed out the RRSPs is because the State of NC has a law against out of state funds management. They don't care if you keep money out of state, but you have to have a broker here in state to do it. Which you can't do with a Canadian RRSP. Stupid law, but there you go. Now its sitting in a 5 year CD because I didn't know what else to do with it.

I just felt it was easier to cut all financial ties with Canada, rather than have to figure out 2 sets of taxes every year, or get snagged later for taxes in Canada if Rev Can thinks you owe them something.