Wiring Money from Canada to US

[Dawgydawgworld 20]

8 hours ago, cyyz2000 said:

Interesting, we plan to do the same (transfer the funds while we're still Canadian residents). Will transferring them after moving to the U.S. trigger tax when it comes to the IRS? 

Selling a Canadian property after becoming a U.S. resident will trigger tax implications with both IRS and CRA. I believe CRA withholds 25% of the sale proceeds until departure tax is figured out. Simply transferring funds to US bank from Canada while still a Canadian resident doesn’t cause an issue with IRS, however if it’s a large sum, CRA will want to know what the funds are being used for I’m sure…that’s when the bank tellers get nosy and start asking questions about what you’re up to lol. 

[Mozillaman 7]

Just did this myself with Interactive Brokers (if you have a friend referral, you'll also get some Interactive Brokers stock for signing up, my referral is this, but please get it from a friend or just sign up without a referral if you don't care about that). If you bill pay to deposit money into IB from a Canadian account, it's free and the funds are only held for 3 days. You can then do currency conversion at the market spot rate for a $2 fee up to $200,000 of conversion. After the hold period is up you can then wire the funds to a bank account in your name in the US. The first wire per month is free, so again there's no cost there. I did the comparison of doing this for $100k USD via wise or via Interactive Brokers and it saves about $500 in fees. Because the forex fees are so low on IBKR it's effectively the same as the Norbert Gambit but without needing to journal over funds.

 

 

ps. note to mods, I didn't see anything at a glance about mentioning you have a referral code to something, if that's against the rules please just zap it.