$10,000 Exemption for Former Residents Moving to Canada

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canadiandeserter
Posts: 58
Joined: Sun Mar 01, 2015 10:52 pm

$10,000 Exemption for Former Residents Moving to Canada

Post by canadiandeserter »

If I am considered a former resident of Canada and import two cars while moving to Canada, does the $10,000 exemption on duties and taxes apply to both cars?

For example, if my cars are worth $12,000 each, would I pay duties and taxes on $2,000 for both cars, or $2,000 for the first car and $12,000 for the second car?

If I drive both cars over the border myself, I assume I would declare, at the first border crossing, the one I am driving on BSF186, and the one I will drive at a later date on BSF186A as goods to follow.

This CBSA web page is a bit ambiguous on the $10,000 exemption: https://www.cbsa-asfc.gc.ca/travel-voya ... c-eng.html
Any idea where I can find the authoritative law on the $10,000 exemption? And I thought the Income Tax Act was convoluted!
nelsona
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Re: $10,000 Exemption for Former Residents Moving to Canada

Post by nelsona »

According to D2-3-2, every item is subject to the limitation, so, in your case you would pay dut on the $2000 overage on each car.
https://www.cbsa-asfc.gc.ca/publication ... 2-eng.html
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
canadiandeserter
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Joined: Sun Mar 01, 2015 10:52 pm

Re: $10,000 Exemption for Former Residents Moving to Canada

Post by canadiandeserter »

Thanks nelsona, expert in income taxes and customs duties!
nelsona
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Re: $10,000 Exemption for Former Residents Moving to Canada

Post by nelsona »

Don't forget that you must also EXPORT your cars from US, and register all this with RIV.ca
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
canadiandeserter
Posts: 58
Joined: Sun Mar 01, 2015 10:52 pm

Re: $10,000 Exemption for Former Residents Moving to Canada

Post by canadiandeserter »

Thanks nelsona for the reminder!

When bring two cars on two different trips, do you know if the second car's value is "locked" at the first border crossing? And would I pay taxes and duties for the second car at the first or second border crossing?
nelsona
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Re: $10,000 Exemption for Former Residents Moving to Canada

Post by nelsona »

You will be importing the carws at the inatant you cross into Canada, with ALL paperwork in order, including the export form you will get at the US border office at that time.
This should all be on the RIV.ca site
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ND
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Re: $10,000 Exemption for Former Residents Moving to Canada

Post by ND »

I recently spoke with a dual citizen student who bought a used car and licensed it in NY while there, now returned home to Canada, wishing to import it to Canada. It must first be exported from US at the border (one can be criminally charged if this is overlooked and a number of Cdn residents have made the mistake of licensing-in-Canada via import their US-bought vehicle without ever also doing the US export), on the US side. He made a special trip to Buffalo only to be told that he must have been in USA for 72 hours in order to export. He just went back to USA for 72 hours and successfully exported it. They valued it at just under $10k, so there was no tax. In case this is useful to anyone.
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