David, What's your opinion/insight/hunch on what is going to happen in the next 6 months with the value of the Canadian buck compared to the U.S. buck? I have just sold my house in BC and will be moving to the States. Should I convert my money now or hold on for awhile? N xxxxxxx (an old client) ------------------------------------------------------------ david ingram replies: I do not pretend to be an economist but did spend four years at UBC getting a diploma in Urban Land Economics. Between the 40% price increase in Real estate in the Vancouver area and the 35% drop in value of the US dollar, you have made 75% extra in US dollars over what you would have got if you had sold the house in 2003. I am one of the people that thinks the US and Canadian dollar are going to par (as it was from 72 to 76) in the near future. Heck, I can remember when a Canadian dollar was worth 1.09 US ( Aug 21, 1957) However, a lot of that thought is based upon the US being able to continue to buy Canadian exports. If they slow down just 10%, it will have a big effect on the relative values and a lot of major economists believe that at best we will stay in the $1.10 US to Canada that we are at now and another few think we will go back to $1.20 US but not higher. A sensible solution might be to move half of it and not get totally caught. If it was me, I would throw at least a third of it into US funds sooner rather than later. The values are based upon perception. There is no doubt that our exports to the US have slowed down in the last while. Remember, you have to report any capital gain on the sale of the house to the CRA from the day you became a non-resident u until the day you sold it. david --------------------------------- David Ingram's US / Canada Services US / Canada / Mexico tax, Immigration and working Visa Specialists US / Canada Real Estate Specialists My Home office is at: 4466 Prospect Road North Vancouver, BC, CANADA, V7N 3L7 Cell (604) 657-8451 - (604) 980-0321 Fax (604) 980-0325 Calls welcomed from 10 AM to 10 PM 7 days a week Vancouver (LA) time - (please do not fax or phone outside of those hours as this is a home office) email to taxman at centa.com www.centa.com www.david-ingram.com Disclaimer: This question has been answered without detailed information or consultation and is to be regarded only as general comment. Nothing in this message is or should be construed as advice in any particular circumstances. No contract exists between the reader and the author and any and all non-contractual duties are expressly denied. All readers should obtain formal advice from a competent and appropriately qualified legal practitioner or tax specialist for expert help, assistance, preparation, or consultation in connection with personal or business affairs such as at www.centa.com. If you forward this message, this disclaimer must be included." Be ALERT, the world needs more "lerts" David Ingram gives expert income tax & immigration help to non-resident Americans & Canadians from New York to California to Saudi Arabia to Mexico to China or Chile - Cross border, dual citizen - out of country investments are all handled with competence & authority. -------------- next part -------------- An HTML attachment was scrubbed... URL: http://www.centa.com/CEN-TAPEDE/centapede/attachments/20061017/e82cb635/attachment.htm
