How many vehicles can I bring back?

This is our main tax information forum which deals with topics concerning Canadians living and working in the U.S., U.S. citizens contemplating working in Canada, and all aspects of Canadian and U.S. income tax and related adminstrative issues.

Moderator: Mark T Serbinski CA CPA

Post Reply
Russ
Posts: 71
Joined: Wed Oct 27, 2004 12:09 pm

How many vehicles can I bring back?

Post by Russ »

Looked like a 'slow news' day, so wanted to ask something I've been wondering about for a while now.

When I return back to Canada as a Canadian resident (presently a US resident / Canadian citizen), I know I'm allowed to bring back a vehicle duty free / tax free as a personal possession if I've owned it for more than a year, and it's on the list of allowed vehicles, etc.

However, in my > 10+ years in the US now, I've accumulated: 2 motorcycles, 1 car, and 1 RV.

All have been owned by me for > 1 year and all are 'legal' vehicles to bring back into Canada with no emmissions problems, etc. (ie: motorbikes are easy and the car / RV will be > 25 years old when I return).

So, am I allowed to bring them all back duty / tax free or only one?

Thx.

Russ
nelsona
Posts: 18363
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

There is no such "one car limit". There is however a $10,000 per item limit, including vehicles, on duty-free treatment for returning residents.


You are allowed to bring almost ANYTHING back as long as it is for personal use and is not to be sold within 12 months, amd it was bought at least 6 months before entry.

Vehicles have certain other restrictions, but number of vehicles is not among them.

See:

http://www.cbsa-asfc.gc.ca/travel/former-e.html

You will need the documantation from these pages for your return.

First time Cdn resident, do not have the $10,000 per item limit
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
Russ
Posts: 71
Joined: Wed Oct 27, 2004 12:09 pm

Post by Russ »

Great info as usual.

However, I had an added question to do with the same subject that may be a challenge for me.

One option I may take is to work in the UK for a year or so. I'm assuming I would file a departure record form the US and visit Canada, get my stuff in order and then off over to Europe.

Is it possible to:

1. get the vehicles, etc. back into Canada without paying duty if I don't become a resident of Canada and leave the US giving up US residency?

2. assuming 1 can't be done - which I strongly suspect - and obviously I'm not going to ship all vehicles into UK for a year and then back into Canada, is there anyway of doing this?

3. One other option I'm wondering is maybe just keep the US residency while in UK, file UK / US taxes and then go back into Canada after UK and give up US residency (file departure record) then.

Any ideas with this?

Thx.
nelsona
Posts: 18363
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

You would not be a returning resident, so you could not likley take advantage of that particular tariff code. there may be others that you could use, but I'll let you research that.

I don't know what filing a departure record would do or not do: you aren't a green card holder, so your establishing tax home in Canada or UK will indicate your departure more than any form.

Where you leave your car mhas no bearing on your US tax status.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
njdude26
Posts: 30
Joined: Fri Jul 21, 2006 6:45 pm

Post by njdude26 »

I landed in May'2004 and stayed in Canada for a month and then left Canada for US and stayed in US till now. Will be moving to canada permanently in October. Im a PR Card holder. My question is at that time i had declared a car in 2004 which I assume i can take it into Canada and register it without incurring the 6% duty+8% Toronto tax.
But since then i bought another car which is a year old. As a returning resident in October you say i would be able to get $10k off this vehicle. But today I called the Border/Customs agency and they told me that I can get in this new vehicle if I owned it for more than 6 months free of duty/tax. Who is correct !! :(
nelsona wrote:You would not be a returning resident, so you could not likley take advantage of that particular tariff code. there may be others that you could use, but I'll let you research that.

I don't know what filing a departure record would do or not do: you aren't a green card holder, so your establishing tax home in Canada or UK will indicate your departure more than any form.

Where you leave your car mhas no bearing on your US tax status.
nelsona
Posts: 18363
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

The regulations are pretty clear that, while you may escape DUTY (US cars and cars owned longer than six months qualify) this does not remove the need to pay GST on the value exceeding $10K.

This applies to anything, not just cars.

See:
http://www.cbsa-asfc.gc.ca/E/pub/cp/rc4 ... 105-e.html

"Any single personal or household item (including an automobile) that you acquired after March 31, 1977, which is worth more than $10,000 on the date you import it, is subject to applicable duties and taxes on the amount that is over $10,000."

The duty would be zero of course, but not the GST.

The six-month clause, saves you the tax on the first $10K of the car's value.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
njdude26
Posts: 30
Joined: Fri Jul 21, 2006 6:45 pm

Post by njdude26 »

Ok now I understand. The GST is 8% ? And also would the GST be charged for a car which I had declared at the time of landing in 2004 ?
and also how can i find the values of the car ? redbook ? any free website where i can get these values ?
nelsona wrote:The regulations are pretty clear that, while you may escape DUTY (US cars and cars owned longer than six months qualify) this does not remove the need to pay GST on the value exceeding $10K.

This applies to anything, not just cars.

See:
http://www.cbsa-asfc.gc.ca/E/pub/cp/rc4 ... 105-e.html

"Any single personal or household item (including an automobile) that you acquired after March 31, 1977, which is worth more than $10,000 on the date you import it, is subject to applicable duties and taxes on the amount that is over $10,000."

The duty would be zero of course, but not the GST.

The six-month clause, saves you the tax on the first $10K of the car's value.
nelsona
Posts: 18363
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

I'm quite sure the border would have these values. The GST is 6%, since july, it was 7%. You may also have provincial salers tax to pay.

Once you paid GST on a car, you won't have to again.

Please read up for yourself on these.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
Pamela
Posts: 34
Joined: Wed Oct 27, 2004 9:10 pm

Post by Pamela »

The border people use their "red book", and the values they assign are higher than you would expect. The Kelly Blue Book, converted to Cdn $ would only give you a very rough approximation.
Post Reply