deposit $20,000

[ading]

Hi, I am new to this forum, but I have a question that I hope someone can help :-) My parents will loan me US$20,000 from China to assist my down payment. Two friends will bring the money to Canada (they are immigrants, so they are allowed to bring US$10,000 per person). My question is, is there a problem depositing that amount of money to a bank at once? Will the bank ask where the money come from? Will I be taxed on the money?

Also, I need to convert the money to canadian dollars, where can I find the best exchange rate?

Thank you again!

[gman]

Hi, I am new to this forum, but I have a question that I hope someone can help :-) My parents will loan me US$20,000 from China to assist my down payment. Two friends will bring the money to Canada (they are immigrants, so they are allowed to bring US$10,000 per person). My question is, is there a problem depositing that amount of money to a bank at once? Will the bank ask where the money come from? Will I be taxed on the money?

Also, I need to convert the money to canadian dollars, where can I find the best exchange rate?

Thank you again!

Why don't you ask your parents to wire the money here? It is safer, cleaner and less question to be asked. Are you saying asking 2 "friends" to bring "cash" here? You are taking a risk.

PS. May be I am missing something. May be China does not allow you to wire that kind of money out.

[Bullseye]

Won't be a problem depositing the cash, though you may get raised eyebrows from the teller. There are no tax implications to bringing cash into the country, that I know of.

[grant]

(they are immigrants, so they are allowed to bring US$10,000 per person).

That's a very interesting restriction... I don't know about china, but any person is "allowed" to bring in any amount they wish into Canada.

Of course the bank is going to report it as a suspicious transaction. That's normal when you do a something suspicious like arrange for 2 separate couriers to bring you so much foreign cash.

Will they ask where it came from... maybe... so what?
Will you be taxed? No, not in Canada.

[Spray]

That's a very interesting restriction... I don't know about china, but any person is "allowed" to bring in any amount they wish into Canada.

Of course the bank is going to report it as a suspicious transaction. That's normal when you do a something suspicious like arrange for 2 separate couriers to bring you so much foreign cash.

Will they ask where it came from... maybe... so what?
Will you be taxed? No, not in Canada.

Actually no, if you're flying theres a restriction of $10,000 USD cash

[emoci]

Hi, I am new to this forum, but I have a question that I hope someone can help :-) My parents will loan me US$20,000 from China to assist my down payment. Two friends will bring the money to Canada (they are immigrants, so they are allowed to bring US$10,000 per person). My question is, is there a problem depositing that amount of money to a bank at once? Will the bank ask where the money come from? Will I be taxed on the money?

Also, I need to convert the money to canadian dollars, where can I find the best exchange rate?

Thank you again!

Unless there is a restriction about taking money out of china, your best bet is to get your parents to get some sort of noterized paper stating that this is a donation from them, just to cover your bases with the bank, otherwise it should be fine.

If you actually do have another way of getting the money here, bank-wise through a transfer it would work best.

I am assuming your two friends are declaring the money as their own. I do know that for immigrants entering the country for the first time the amount of money declared plays a great role on whether they would be able to receive any sort of social assistance, if and when they need it (this may in fact cause more rouble for them than for you).

[15-20_God]

what puzzles me is the need to carry cash.
why can't your parents wire you the money or have a bank draft made? it'll cost a bit more but save everyone a lot of hassle.

[charliebrown]

China is very strict with its monetary flows (part of their centrally managed foreign exchange policy). So, while wiring the money would be simplest, the paperwork and the eyebrows raised in china will be incredible

You dont have to deposit all $20,000 at once...split it up into multiples of $2000 or 5000

again, because of the monetary controls, legally, you will not be able to go to a canadian bank and exchange ur RMB for canadian dollars (even if banks accepted the RMB, you'll lose out quite a bit on the FX spread

will your friends travel via Hong Kong? much easier to exchange RMB for HKD or directly RMB for CAD there

[jameswong]

Gift from parents are regarded as income according to Canadian tax law and you are obliged to report that for your income tax return.

[Bullseye]

Gift from parents are regarded as income according to Canadian tax law and you are obliged to report that for your income tax return.

Total bull, that is definitely not true. Why do people post here when they have no clue what they're talking about??

[PrinceMS]

What currency are they bringing it in? If you are converting from USD to CDN then check ING (they have a special bank account - no fee account) that you can open and you get good rate.

I am quite sure if you call small places (from yellowpages.ca) you can negotiate the rate with them - and will get better rate than big banks.

[ading]

Thanks everyone for the info, but I am still confused :-). Chances are my parents will visit me themselves so they can bring the cash with them. They'll bring USD instead of RMB of course. I don't think it is possible now to wire $20,000 from China to Canada, there are definitely restrictions.

I will probably deposit multiple time (say, $5000 each time), just to avoid unnecessary questions.

[gman]

Unless there is a restriction about taking money out of china, your best bet is to get your parents to get some sort of noterized paper stating that this is a donation from them, just to cover your bases with the bank, otherwise it should be fine.

If you actually do have another way of getting the money here, bank-wise through a transfer it would work best.

I am assuming your two friends are declaring the money as their own. I do know that for immigrants entering the country for the first time the amount of money declared plays a great role on whether they would be able to receive any sort of social assistance, if and when they need it (this may in fact cause more rouble for them than for you).

You mean gift. Donation means something else in the tax system. You will confuse the hack out of the bank.

[grant]

Actually no, if you're flying theres a restriction of $10,000 USD cash

there is no "restriction".

If you are bringing negotiable instruments into canada (includes cash, bonds, etc.) then you are required to report it to customs when you pass.

and the threshold is $10,000 canadian.

[chococrazy]

Total bull, that is definitely not true. Why do people post here when they have no clue what they're talking about??
Agreed. That person doesn't know what they're talking about.... you do not have to report monetary gifts from parents as income.

[phd1969]

I know in the United Stated, any deposit over $10,000 has to be reported to the government by the bank.

[rf134a]

The threshold is the same here in Canada.
The guidelines are here: http://www.fintrac.gc.ca/reporting--declaration/1_e.asp

[ramoose]

I know in the United Stated, any deposit over $10,000 has to be reported to the government by the bank.

When you deposit $10000. cash the teller will ask you to fill out a form.
as for rates try the money exchange places they have at the malls

[chimaera15]

You're better off depositing the entire $20k at once at the bank as it will much less suspicious than multiple thousand dollar deposits. The bank will fill out a form as it is required for deposits over $10k, even the deposits are not made at once. The teller will fill out the form in front of you, so just tell them the truth and you will not have any problems. Make sure you ask the bank for a better rate on the exchange, for such a large sum they will be able to.

[eelfliw]

Any time you deposit large sums of cash (and $20K qualifies as large sum) into a personal account, your bank is obliged to enter your personal info into a "Proceeds of Crime" system operated by gov't. This system, as its name suggests", logs your deposit and may use it in future investigations. Of course, if the money is clean, you've nothing to worry about. But it raises the risk that you'll be questioned in the future. To avoid hassles, keep the money under your mattress or in a bank safety deposit box. Since you'll be using it soon (as a downpayment), you won't be missing much interest payments.

[ALsat]

To avoid hassles, keep the money under your mattress or in a bank safety deposit box. Since you'll be using it soon (as a downpayment), you won't be missing much interest payments.

Burying it in the back yard works also.

Just make sure there aren't too many squirrels in the neighborhood, so that they won't be digging out all the cash every few days... :lol:

[nites]

i dont think it is a problem to deposit the money as I came with 55,000CAD. Banks will be more than happy to have the deposit. Only if ur taking out the money like more than 5000 CAD, then they ask u some questions. But of it is to buy a house or for personal reasons, You are allowed to woithdraw, provided u have to let them know a week ahead as then they can arrange the money for withdrawal. Or else i dont see aproblem with deposit.

[Blazin_Sunfire]

anti money laundering forms will probably be needed to be filled out at the bank...

[ngignac]

Dosnt any deposit over 10000$ or something like that have to be looked into