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Originally posted by Whosane

Hi! I am in preparation of landing in QC this year hopefully. I seek certain clarification with regards to declaration at the time of landing.

1) If per CHANCE, say I have properties cumilative approx value CAD 500,000/- which I intend to dispose in India and get the money to Canada in the span of 2 to 3 years time do I need to declare it initally at the time of landing?

2) Rental income from any properties outside Canada is it to be declared as well at landing?

3) Do I need to provide any proof at the time of declaration during landing for properties, rental incomes, jeweleris, bank bal etc.

4) If I want to buy a house in Canada by selling a property in India can I do it without paying any tax?

Regards,

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YOU DECLARE CASH AND JEWELERY 'ON PERSON' AT THE TIME OF LANDING and OTHER PROPERTIES IN YOUR TAX RETURN and you will get a chance to show all of it at that time.

1) NO. You do not know the value of the property. So, to get a good value for it, get it evaluated by a qualified APPRAISER (One or Two) and get a few copies of them right at the strart. There is no tax on the value of the property till after you land and then sell the same there in India. More over, you will get a break there in India in your CAPITAL GAINS, with the indexing and cost of living. But here in Canada you will pay ONLY on the appreciation in the value of the property after your landing here in canada.
As an example, if the value goes up by say $50,000.00 when you are selling it there in India, then the whole amount will be considered as Capital Gains here and it could be long term capital gains there, but you will include half of it as CG in your Tax Returns here, and pay the taxes at a level (rate) that you will fall in at pay that rate. (Approximately $12,500)

2) Rental income : NO. You do not devclare it at the time of landing. Only the cash and the jewelery that you have in your possession at the time of landing.
The income that you derive there in India such as rental income, interest income and other investments, which will call for all of your investments, Provident Fund, GIC's and Bonds etc., will also fall in that category. These will get into the tax return as your investment income and any taxes that are paid there in India on this account can be claimed as taxes paid on overseas investments.

3) NO. You can certainly declare the same as Goods and Monies to follow. But it is not Mandatory. If you would like to bring the following items as goods to follow, such as, Gold Jewelry, any Artifacts, Other collections, such as Art, Stamps and Coins and any other Goods, such as furniture, carpets etc., please make a comprehensive list with pictures and appraisals of the same and DECLARE the same upon landing as items to follow. All of these items are FREE when you declare. You can bring them all in FREE at the time of landing either on person, or as goods to follow. There are a few items that are forbidden and a couple of them that I know are Ivory and feathers etc., of rare birds and Fire arms and ammunition. Also a few plants, fruits and flowers. The list is a long one.

4) YES. Please see the explanations provided. If you sell the property prior to arrival and then utilize the sum here. It is O.K. Your sale was prior to landing. So, the gains did occur prior to landing. There is an exemption on ONE Principal property where you live in here in canadian Tax system. So, the gains here get sheltered automatically for the Principal property. NO Tax at all on the gain in value.


FH