Bank Account

mel0526 · Post by **mel0526** » Tue Nov 11, 2008 3:13 pm

Hi,

I have a checking/saving account in the US with around $50k in it. I'm moving back to Canada soon (December 2008). How is the best way to process with it?

If I transfer it all in a Canadian bank account, what will be the impact for tax purposes?

Thank

nelsona · Post by **nelsona** » Tue Nov 11, 2008 3:46 pm

The actual transfer does not trigger tax anywhere of course.

For Cdn purposes, regardless of where the account is held you are liable for tax on the income (interest) it generates.

Bringing it to canada would simplify your life, plain and simple.

As always, when transferring money to Canada, you will do much better bringing it to canada in USD and exchanging it here, rather than exchanging it into CAD while in US.

nelsona · Post by **nelsona** » Thu Nov 20, 2008 12:30 pm

This is incorrect.

Both canada and US tax based on residency, so interst earned ANYWHERE is subject to tax, provided one is resident in canada or US (also citizen of US).

mel0526 · Post by **mel0526** » Wed Mar 18, 2009 8:54 pm

I have a question about my transfer and capital gain/loss. I transfered all my US bank account in a Canadian bank account in US$ until I'm ready to use it to buy something. Do I will have to consider capital gain/loss when I will do it?

Thank

nelsona · Post by **nelsona** » Thu Mar 19, 2009 3:52 am

Only if your exchange rate has changed sufficiently from December 2008 (when you moved to canada) and now.

Has it?