Did find this, which may answer your q although is a few years old.
https://taxinterpretations.com/cra/severed-letters/2013-0478241e5
https://taxinterpretations.com/cra/severed-letters/2013-0485661e5
How much do you know about financial independence?
6061, what exactly is your question? Too many hypothetical theoreticals in your posts to answer with google.
https://turbotax.intuit.ca/tips/declaring-foreign-property-on-your-tax-return-6217
I think that Turbotax link answers my question…that as I own less than $100,000 CAD foreign property, I don't need to declare it.
Did find this, which may answer your q although is a few years old.
https://taxinterpretations.com/cra/severed-letters/2013-0478241e5
https://taxinterpretations.com/cra/severed-letters/2013-0485661e5
Fook me, can't these people write in English! Lol!
On the one hand they (the CRA CPA) states all worldwide income has to be declared and then,in the next paragraph, contradict themselves by stating it only applies if you have [HTML_REMOVED] $100,000!!
So, it appears, I'm still confused. I have a Stocks and Shares Tracker ISA. Over time, the stock price goes up and down. Any profits are re-invested.I don't manage it and I don't receive any income from it until the day I cash it in (I've had it for quite a number of years during which time the value plunged badly a couple of times during recessions but I've never added,or withdrawn, any cash).
So my question is, do I need to report or not (purely based on it never exceeding the $100k limit) and if I do have to report, how would I go about determining the annual income?
And now you are back to here. Interest and dividends in taxable account are considered income when paid to your account, even if you don't spend a penny on carbon bikes. Capital gains tax applies when you sell your fund to realize (turn the mutual fund into cash) a gain.
Talk to an accountant.
http://www.finiki.org/wiki/Tax-efficient_investing
Interest is taxed at your income tax rate.
Qualified Canadian Dividends are taxed at a preferred rate, even negative rates in some cases.
http://www.finiki.org/wiki/Dividend
Capital gains are taxed when you sell.
http://www.taxtips.ca/personaltax/investing/taxtreatment.htm
All of this is irrelevant in your TFSA - theoretically, no Canadian resident over 18 should be invested in a taxable savings or investing account before thier TFSA limit is maxed.
You could try this guy but he hasn't been very active recently and is likely busy with tax season.
http://forum.mrmoneymustache.com/taxes/can'eh'dian-tax-you-have-questions-i-have-answers/650/
Fook me, can't these people write in English! Lol!
So, it appears, I'm still confused. I have a Stocks and Shares Tracker ISA. Over time, the stock price goes up and down. Any profits are re-invested.I don't manage it and I don't receive any income from it until the day I cash it in (I've had it for quite a number of years during which time the value plunged badly a couple of times during recessions but I've never added,or withdrawn, any cash).
So my question is, do I need to report or not (purely based on it never exceeding the $100k limit) and if I do have to report, how would I go about determining the annual income?
It will depend on what tax-treaties Canada has with the UK. For example if you hold an ETF or mutual funds listed on a US exchange inside of your TFSA then the US government makes you pay a 15% "foreign withholding" tax on your dividends. If instead those investments were held inside an RRSP account then due to a tax treaty between Canada and the US you wouldn't have to pay a foreign withholding tax.
Given that your investments are held inside what seems to be the UK equivalent to our TFSA provided there is some sort of tax treaty between Canada and the UK you should be fine.
Whatever financial management platform you have should be able to issue you tax documents as well and does all the calculations for you.
Should there be no tax treaty between our two countries and your financial management company/bank/whatever has no available tax forms for you, you are in for a world of hurt trying to calculate capital gains and losses and the like because if you have purchased equities/mutual funds that are on a DRIP program, you then have to perform those tax calculations every single time you get paid a dividend.
You could try this guy but he hasn't been very active recently and is likely busy with tax season.
http://forum.mrmoneymustache.com/taxes/can'eh'dian-tax-you-have-questions-i-have-answers/650/
Hey, there's is Heckler on that forum as well! ;-)
Sounds like this is gonna be a major pain in the ass so I may cash in and bring the cash over into my TFSA and suck up the poor exchange rate….
No idea what youre talking about.
I've been using TransferWise lately to transfer money from Canada to the UK. super easy to use and way cheaper than the crappy exchange rates one gets with the bank. Recommended.
I've been using TransferWise lately to transfer money from Canada to the UK. super easy to use and way cheaper than the crappy exchange rates one gets with the bank. Recommended.
yeah agree on TransferWise, easy to transfer to from my US/CAD Accounts. Direct debit daily max is $9500 though, but super inexpensive.
Is there a Vancouver in Taiwan?! I had no idea!!
Nothing sums up my life's achievements like my stuffed corpse, suplexing a cougar.
yeah agree on TransferWise, easy to transfer to from my US/CAD Accounts. Direct debit daily max is $9500 though, but super inexpensive.
Clearly, you are more baller than I if you transfer these figures daily! :lol:
Should there be no tax treaty between our two countries and your financial management company/bank/whatever has no available tax forms for you, you are in for a world of hurt trying to calculate capital gains and losses and the like because if you have purchased equities/mutual funds that are on a DRIP program, you then have to perform those tax calculations every single time you get paid a dividend.
Ok, I'm back having read some more but not (yet) took up Hecklers advice to talk to an accountant (as I don't have one).
There does not seem to be a tax treaty between Canada and the UK.
I've read thru all the statements I've received from the ISA management company and they do not detail any individual buy/sell transactions, though they do detail their charges. Any dividends are "reinvested into the value of your units" (and these aren't detailed in their statements either) meaning, I guess, that I haven't received any income as such from dividends so have no income to declare to CRA
L[HTML_REMOVED]G Tracker Trust ISA
Note: ever since this ISA was opened, I have neither added additional funds nor cashed in anything. I still own exactly the same number of "units". The fund has grown in value as the price per unit has increased. I guess I'll get hammered for capital gains when I eventually cash in, but for now, I'm hoping my previous tax returns are good. At no stage during my ownership of the ISA has it got anywhere near the $100,000 T1135 reporting limit. Even at its max per unit value and most favorable exchange rate, it wouldn't be worth $35k…
I'll pop into H[HTML_REMOVED]R Block or see whether I can get a definitive answer direct from the CRA enquiry line…:dizzy:
L[HTML_REMOVED]G Tracker Trust ISA
f:
Sorry for the unsolicited lesson in the result of fees, but do you see the ~ 100 GBP difference over the past four years in the value of the fund to the FTSE index? (Red line vs green line at Dec 2016) That's the cost of 1.15% in fees every year.
In contrast, you have the Vanguard UK alternative which charges 0.08% ongoing with a 0.2% entrance fee. Same index as your fund, but you wont lose 25 GBP per 1000 per year of growth.
Food for all of our money trees.
http://www.morningstar.co.uk/uk/funds/snapshot/snapshot.aspx?id=F00000LWVH
My morningstar link is the Institutional class fund because the investor class fund I linked in Vanguard UK wasn't showing up on Mstar. I suspect the difference is even less fees if you have more than 10k.
Over 5 years, $100 becomes $144.7 or $151.4 with the same index but different fees.
Put another way $100,000 becomes $144,700 or $151,400 - that's $6,700 I'd rather have in my pocket.
On a $40k account over 30 years these two funds will be ~$3k different in value with the same risk level. (Very rough numbers based on $100/1000 over 4 years)
Then go to the advanced graph to see the long term effect.
The Vanguard fund is only 7 years old, so you can't do a 10 year comparison - only 5 years. But you can see how the Vanguard fund tracks the index, whereas higher fee funds diverge greater over time.
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