Transferring money from US bank to Canadian bank

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Bonj
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Transferring money from US bank to Canadian bank

Post by Bonj » Mon Nov 19, 2007 5:17 am

Dear Nelsona, I will be landing from USA to Canada as a landing immigrant. After I land and open a Canadian bank account, I would like at some point to transfer some of the money I currently have in US bank to my new Canadian bank. Could you please advise me what would be the best way to do such a transfer? Could I write a regular check, issued from my US bank, to my self and deposit it in to my new Canadian bank account? If yes, could the amount be more than US $10,000, which might also be more than CAN $10,000?
Also when departing the USA, do I have to report to Customs that I am living behind some money in the USA which I plan to send abroad at a later date?
At Canadian Port of Entry, I understand that I have to report to a customs officer amounts equal to or greater than CAN$10,000 that I am bringing into Canada. Do I also have to notify the customs that in the near future I am going to transfer in to Canada more than CAN $10,000?
Thank you very much for your help!

nelsona
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Post by nelsona » Tue Nov 20, 2007 8:22 am

The simplest would be to write a check.

There is no need to report these transactions as you would be going thru the banks. the 10,000 reporting is if you are carrying money (otherwise untrceable) on your person. The banks have their own reporting system which satisfies the law.

You would not need to report anything at Cdn customs about the wherabouts of your money.
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Bonj
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Post by Bonj » Tue Nov 20, 2007 12:57 pm

Once the check is deposited, will the Canadian bank exchange the US$ into CAN$ right the way, or the US$ can be exchange on later date?
I’ve red somewhere that once in Canada, I can no longer keep my American brokerage account. Do I have to close it prior to entering Canada?
If I enter Canada on, lets say, March 01 2008, do I have to report on my Canadian tax return forms any income I have earned from January 01 – February 29, 2008?

Thanx a lot one more time!

nelsona
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Post by nelsona » Tue Nov 20, 2007 1:14 pm

The exchange will take place on the day you deposit the check. Alternatively, you could open a US dollar account, and trade when you feel like it. but if that was the case, then why not just leave the US money in your US account until needed.

You should not be trading in a US (non-IRA) brokerage account once you reside in canada, since that broker is not licensed in your province of residence.

You will be liable for tax on worldwide income from Mar 01 onwards, and Cdn-source income before that date. Read the "Newcomers" guide from CRA.
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US_Canada
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Post by US_Canada » Sat Nov 24, 2007 8:55 am

Open a TDBankNorth account in the US. Once you are in Canada; open a TDCanadatrust account.

Then, you can transfer USD to CAD from US to Canada, same day with only conversion charges due. Quite convenient.

nelsona
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Post by nelsona » Sat Nov 24, 2007 4:45 pm

using customhouse.com avoids having to open up 2 accounts; where is the convenience in that?
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US_Canada
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Post by US_Canada » Sat Nov 24, 2007 7:08 pm

[quote="nelsona"]using customhouse.com avoids having to open up 2 accounts; where is the convenience in that?[/quote]

He gets ATM access and all benefits of a local checking account in both countries. *Shrug* Works for me.

webcite_99
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Post by webcite_99 » Sat Nov 24, 2007 11:46 pm

"You should not be trading in a US (non-IRA) brokerage account once you reside in canada, since that broker is not licensed in your province of residence. "

what if any real consequences could flow to the individual should he elect not to close his US account and continue to trade in it.

nelsona
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Post by nelsona » Sun Nov 25, 2007 7:28 am

Admittedly the consequences woukd mostly be borne by the brokerage for accepting illegal trades (yes, illegal), in the form of sanctions and fines from the provincial exchange regulators.

Would the brokerage then go after you? I guess you would need to read your customr contract, but I try to avoid situations where I will knowing cause someone else to unknowingly break the law
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nelsona
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Post by nelsona » Sun Nov 25, 2007 7:30 am

"He gets ATM access and all benefits of a local checking account in both countries. *Shrug* Works for me."

I'm quite sure he has that already in US and will when he opens his Cdn account -- anywhere.
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webcite_99
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Post by webcite_99 » Sun Nov 25, 2007 11:35 am

What if the individual is also a US citizen and placed the trades while in the US -- say while on vacation or traveling thru the US? Or, what if the individual gave power of attorney to a US resident like a relative or an accountant, and that person was making the trades?

are there any other creative ways for a person to maintain the US account after becomming a Canadian resident and avoiding the ire of the Provincial govt.?

nelsona
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Post by nelsona » Sun Nov 25, 2007 5:22 pm

Tell you what. Why don't you ask your broker and see what he says.
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