Closing Bank Account Before Leaving

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jgoveas
Posts: 88
Joined: Thu Mar 12, 2009 5:37 pm

Closing Bank Account Before Leaving

Post by jgoveas »

Hi Nelsona,

My husband and I are returning to Canada and were going to keep our US bank account open until the Dollar gained some serious strength again and then close out the account later (our bank told us how to do it remotely). However, I'm reading on forums that Canada might find it weird that a large sum of money follows us and may tax us on that money? Would you recommend that we close out the account before leaving?

Slightly related, is there any steps we need to take before departing the US to get our contributions to social security transfered to Canada or can we worry about that when we file taxes next year?

Thank you!
nelsona
Posts: 18677
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

Wealth (the mere possession of money or property) is not taxable in canada under any circumstance, including the one you describe. If it were to gain against the Cdn dollar you may owe cap gains, but that would be true os a US bank acct kept in canada as well.

If you carry a cardboard box full of cash accross the border you will be questioned about it, but not taxed.

If you transfer money banktobank there isno problem under any situation.

As to SS, you don't get any contributions transferred to Canada. When you retire, you will get some SS based on the contribs you made (it will be small unless you contributed for 10 years) by coordinating with CPP office.

SS is not a tax issue.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
jgoveas
Posts: 88
Joined: Thu Mar 12, 2009 5:37 pm

Post by jgoveas »

Thank you Nelsona! Both of those are a relief to know.
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