Hi,
I am new here and have learned a lot from this website as well as bogleheads. Here is my situation: I am a US citizen and have worked in Canada for five years and will return to US permanently (as a graduate student for the next two years). My questions are:
1) I will sell my Canadian house before I leave. Since I've lived in it for more than two years, I won't be paying Canadian tax for the capital gain, right? I will have six figure Canadian dollar that needs to be exchanged and transferred across border. I am thinking of using Canadianforex for their competitive exchange rate. Any other suggestions? Given the fluctuations in exchange rates, is it wise to exchange the sum over a few months? If so, does it mean I need to have my bank account open after I physically left Canada and then close it when I am in the US? Does that mean my Canadian non-resident status will start after I close all my bank accounts?
2) I have some five figure pension that can be transferred to my RRSP (in questrade). I intend to cash out RRSP. Shall I do this before I leave or after I leave the country? I am afraid that if I do it in the transition year before my non-resident status established, I will pay penalty tax as well as marginal income tax rate for RRSP instead of a flat withholding tax(25%). If I cash out next year, when my worldly income is essentially zero (as a student), will section 217 be applicable? I've read about section 217, but don't understand how it works. Section 217 seems really complicated. Is it worthwhile to hire a professional to handle this?
Sorry for so many questions. Your help/input is highly appreciated!
Help with asset handling when leaving Canada to US
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Re: Help with asset handling when leaving Canada to US
I have used Canadian Forex for CADEUR 2 years ago and it was easy and cheaper than others. That is why I selected it after a bit of research.
You don't need to close your account to become non resident. I am actually looking for an account that can stay open after I become resident of France. My current FIs want me to close my accounts with them (Scotia iTrade, PC Financial).
I can't really answer your other questions as I am also struggling myself with my own interrogations!
You don't need to close your account to become non resident. I am actually looking for an account that can stay open after I become resident of France. My current FIs want me to close my accounts with them (Scotia iTrade, PC Financial).
I can't really answer your other questions as I am also struggling myself with my own interrogations!
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Re: Help with asset handling when leaving Canada to US
Thank you so much for the reply. Actually, I found out that I could get spot exchange rate in non-registered margin account through a broker (i.e., questrade). There is some hassle with opening such an account but worth the trouble I think given the favourable exchange rate. Thanks again.
Re: Help with asset handling when leaving Canada to US
Are you sure about this? Can you point to a Questrade document stating this?
finiki, the Canadian financial wiki: a knowledge base of financial subjects written from a Canadian perspective
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Re: Help with asset handling when leaving Canada to US
I chatted with a questrade representative and was told so. When I checked again this morning, it appears there is a 1.99% conversion fee charged for the direct exchange. But I also found this online: http://www.finiki.org/wiki/Norbert%27s_gambit, which might provide the solution?
Re: Help with asset handling when leaving Canada to US
That sounds much more likely.bluesky9845 wrote: ↑26 Jun 2017 10:15 ... When I checked again this morning, it appears there is a 1.99% conversion fee charged for the direct exchange.
Perhaps, I would ask directly on the Norbert Gambit topic.bluesky9845 wrote: ↑26 Jun 2017 10:15 ... When I checked again this morning, it appears there is a 1.99% conversion fee charged for the direct exchange. But I also found this online: http://www.finiki.org/wiki/Norbert%27s_gambit, which might provide the solution?
I would also look at Transferwise and similar outfits.
finiki, the Canadian financial wiki: a knowledge base of financial subjects written from a Canadian perspective
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Re: Help with asset handling when leaving Canada to US
wow, 49 pages to learn on NG.
Transferwise would charge 0.5% fee, if amount is 300K, it is 15K fee. Seems much cheaper using NG.
Transferwise would charge 0.5% fee, if amount is 300K, it is 15K fee. Seems much cheaper using NG.
Re: Help with asset handling when leaving Canada to US
Start at the most recent pages first and screen the posts working backwards. That is because some institutions may have changed their processes between the earliest and latest posts of that thread.
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Re: Help with asset handling when leaving Canada to US
Thanks for the advice, will do.