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Jimmy The Tulip

CAN>US. What to do about finances?

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Where can I learn more about what to do with my finances? No mortgages or real estate-just cash and stocks in RRSP/TFSA/Savings.

 

What are tax obligations entering the US? Are there any tax obligations, outside of the norm, when leaving Canada? What is the most efficient way to transfer/bring that money to the US? I have more questions but hopefully someone can direct me to a resource I can sift through. Google searches arent giving me all the answers.

 

Thanks!

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The most efficient way is to bring it with you. Bring a cashiers check payable to you, but that will take a week to clear minimum when you get here. Bring it all in cash if you want, just declare it if over 10.000.00 US and fill out a simple 1 page form and in you come with as much as you want. I have traveled with amounts ranging from 20- 60 thousand US dollars with no issues. You have a valid reason to be bringing the money( You are moving here on a immigrant visa if F2-A is what you enter on), and they will understand your need to bring your money with you. That is the free way more or less. Or you come here and open a bank account then do an international wire transfer ( Cost 35.00 or so) and electronically transfer the money in. If it's millions of dollars, go for the wire transfer, under 100K just carry it in. Under 10k, you don't have to declare anything and just cross with money on your person. And I am not a tax expert, so I won't give a 100 Percent guaranteed answer, but as long as the money was earned outside the US, I don't believe you have to pay taxes on it, but I am sure someone else can offer a better insight on the tax aspect.

Edited by Loren Y

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3 minutes ago, Loren Y said:

The most efficient way is to bring it with you. Bring a cashiers check payable to you, but that will take a week to clear minimum when you get here. Bring it all in cash if you want, just declare it if over 10.000.00 US and fill out a simple 1 page form and in you come with as much as you want. I have traveled with amounts ranging from 20- 60 thousand US dollars with no issues. You have a valid reason to be bringing the money( You are moving here on a immigrant visa if F2-A is what you enter on), and they will understand your need to bring your money with you. That is the free way more or less. Or you come here and open a bank account then do an international wire transfer ( Cost 35.00 or so) and electronically transfer the money in. If it's millions of dollars, go for the wire transfer, under 100K just carry it in. Under 10k, you don't have to declare anything and just cross with money on your person.

 

This makes sense. thank you.

 

Are there any tax obligations on that money upon entry or a year later when I have to do my taxes? Lets say I bring in a cashiers cheque for 50k USD.

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1 minute ago, Jimmy The Tulip said:

This makes sense. thank you.

 

Are there any tax obligations on that money upon entry or a year later when I have to do my taxes? Lets say I bring in a cashiers cheque for 50k USD.

I am not 100 percent on the tax thing, but is you keep a record of where the money came from ( Bank statement) and it was not earned here, I don't think you have to mention it, but I am not sure. Cash, cashier check, gold, silver, diamonds, doesn't matter as they say any " Monetary instrument" over 10,000 has to be declared, the money part I am very familiar with, tax aspect not so much. But there are excellent knowledgeable people on here that I am sure will offer you some pointers on the tax responsibility.

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2 hours ago, Jimmy The Tulip said:

Cash and stocks in RRSP/TFSA/Savings.  What are tax obligations entering the US? Are there any tax obligations, outside of the norm, when leaving Canada?

When you finally emigrate to the US and are no longer a tax resident of Canada, beware of the TFSA.  It is not tax free in the US, even if they have the equivalent Roth.  Cash it out beforehand.

 

RRSP - Do "step up" in cost base before you depart.  Google that.  Basically buy/sell stocks inside RRSP to have higher tax base.

 

Investments outside of TFSA/RRSP - Well even if you don't sell, you will owe Canada what is commonly known as departure tax, which is paying tax on the value that an investment appreciated in capital until the day you departed.  I saved myself the trouble and liquidated my investments.  Ditto for investments inside TFSA.

 

Make sure you have a plan for your future FX conversion.  Open a US bank account in advance and set up a FX exchange service.  Do not transfer FX at the bank - they hose their customers.

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8 hours ago, shammykay said:

When you finally emigrate to the US and are no longer a tax resident of Canada, beware of the TFSA.  It is not tax free in the US, even if they have the equivalent Roth.  Cash it out beforehand.

 

RRSP - Do "step up" in cost base before you depart.  Google that.  Basically buy/sell stocks inside RRSP to have higher tax base.

 

Investments outside of TFSA/RRSP - Well even if you don't sell, you will owe Canada what is commonly known as departure tax, which is paying tax on the value that an investment appreciated in capital until the day you departed.  I saved myself the trouble and liquidated my investments.  Ditto for investments inside TFSA.

 

Make sure you have a plan for your future FX conversion.  Open a US bank account in advance and set up a FX exchange service.  Do not transfer FX at the bank - they hose their customers.

So it seems like cashing out of my stocks is the easiest way. I can do that.

 

So now lets say I have 50k CAD or USD as a bank draft to bring with me. When I cross I will declare this amount. Are there any tax obligations on this from the IRS side? Be it at entry or in a year when I have to do my taxes? I want to know if the money I am bringing in will be taxable or not. Hoping not, but want to confirm.

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Leave your RRSP alone.  Reset the book value to todays values.  The USA only taxes gains from the book value and once you are a non res of Canada as you start to receive your retirement benefits from it is only taxed at 15%.  Ask an accountant.

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On 1/10/2019 at 7:22 AM, Jimmy The Tulip said:

So it seems like cashing out of my stocks is the easiest way. I can do that.

 

So now lets say I have 50k CAD or USD as a bank draft to bring with me. When I cross I will declare this amount. Are there any tax obligations on this from the IRS side? Be it at entry or in a year when I have to do my taxes? I want to know if the money I am bringing in will be taxable or not. Hoping not, but want to confirm.

Would be interested in this too. Did you ever find out?

I would potentially need to bring north of $200K of savings to the US when we officially move there. I want to make sure there is no obligation to pay any tax on them. 

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On 1/14/2019 at 11:10 AM, santoki said:

Would be interested in this too. Did you ever find out?

I would potentially need to bring north of $200K of savings to the US when we officially move there. I want to make sure there is no obligation to pay any tax on them. 

I have not. I have a few contacts that have done this move so I will know soon-my interview is end of Feb so I need to know soon. 

 

Check back with me in a few weeks. If you come across anything in the mean time let me know

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