Question about Money between Canada and the U.S.

[Matsiepan 6]

In preparation for the eventual move to be with my husband, I have been working extra shifts to bump up my personal savings. Hopefully by the time of the move I will have about 28k at my disposal, before exchange rate of course. This will cover some of the moving costs, and other expenses after the move (i.e. since I would like to have some time off before looking for a job stateside, I will have money to spend without eating into my husband's already stretched paycheque).

Correct me if I am wrong, but you have to declare anything over 10k that you are personally carrying when you cross the border, yes? Can this and wire transfer fees be avoided by simply creating a Canadian and U.S. bank account with RBC, transfering the money between those two accounts well in advance of the move, and simply using a debit card when I get to the U.S., or do I have to declare the money in the account as well? My husand and I have a joint BOA account, but I'm hoping to avoid the hassle of doing a wire transfer and incurring more fees than I need to, but I want to make sure I dot my I's and cross my T's so to speak.

[Lemonslice 4,886]

You will have to declare it one way, or the other (unless you spend it all) - see http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Report-of-Foreign-Bank-and-Financial-Accounts-(FBAR)

Who Must File an FBAR

United States persons are required to file an FBAR if:

1. The United States person had a financial interest in or signature authority over at least one financial account located outside of the United States; and
2. The aggregate value of all foreign financial accounts exceeded $10,000 at any time during the calendar year to be reported.

United States person means U.S. citizens; U.S. residents; entities, including but not limited to, corporations, partnerships, or limited liability companies, created or organized in the United States or under the laws of the United States; and trusts or estates formed under the laws of the United States.

See also their rules about "Substantial presence" (as in... you might have had to declare it already - some snowbirds now have to file for US taxes even if their status is only "visitor" / IRS and Immigration do have different rules) - http://www.irs.gov/taxtopics/tc851.html

To meet the substantial presence test, you must have been physically present in the United States on at least:

1. 31 days during the current year, and
2. 183 days during the 3 year period that includes the current year and the 2 years immediately before. To satisfy the 183 days requirement, count:
   • All of the days you were present in the current year, and
   • One-third of the days you were present in the first year before the current year, and
   • One-sixth of the days you were present in the second year before the current year.

Now, to transfer money between countries, I've found the Trades at xe.com to be reliable (a little bit slow, sometimes) and free. Oh, and I got an accountant to handle all that for me... didn't want to risk it.

[Matsiepan 6]

Good to know. Thank you for posting those links!

[Lemonslice 4,886]

Good to know. Thank you for posting those links!

Usually, you will not "lose" money - it's just complicated to make sure to declare everything and not get a fine later. If you do have a bit of money, some accountants know about Canada and the USA - it was quite useful when I moved. One user knew a lot back then on the Canada forum, zaggy? I can't remember his/her name.

[Rob & Monika 87]

You can also transfer between TD Canada and TD US and get the fees waved.

[Flames9_RN 358]

You can do it via the banks or a service such a customhouse.com--now owened by western union! Just keep in mind a place may say NO FEES, but that does not mean it is a better deal, as they may be giving you a lower exchange rate, its best to check around and ensure you know the whole picture. Customhouse used to be great and free and gave a great exchange rate, but since it has been bought out by western Union, I found the exchange rate wasn't as good!!

[Stubby and Rio 4]

I transfer my money between RBC Canada and RBC USA

[Ms Hogan 295]

I also use RBC. I simply moved my money a bit at a time though I did not have $10k saved up before I moved.