# Selling gold coins in Canada, what taxes will apply?



## JayB

Hello,

I am not Canadian (yet) and would greatly appreciate information regarding my situation.

I am moving to Canada from Scandinavia with my Canadian wife and kids. 
I have a lot of gold coins I have put away as an investment.
I am planning on bringing them with me to Canada, and sell them to pay for some of our house.

The worth is quite considerable, probably around $300 000 - 400 000 in standard bullion coins (maple leaves, double eagles etc).

I am wondering how this will be taxed?
I am guessing capital gains tax?

I have hade these coins for years, the bulk were inherited and some were given to me. A few I purchased myself, as for the rest there is no documentation what so ever and therefor no acquisition value.

How would the Canadian authorities calculate capital gains in situations like mine, where there really is no form of acquisition value?
In most European countries they put the acquisition value at 20% of the value at the sale, then apply capital gains tax.

Is the process similar in Canada?

When I sell the coins, do I just declare the sale on my yearly tax form?

Very grateful for information!


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## Spudd

It will definitely be capital gains tax, and yes, you just declare it on your tax form when you do your taxes.

Here is an earlier thread with a similar discussion that you might find helpful:
http://canadianmoneyforum.com/archive/index.php/t-9125.html


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## JayB

*haste makes waste*

Thanks a lot for the link, I will check it out!


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## OhGreatGuru

If you have records of the inherited ones (will or estate documents) you could determine a "deemed acquisition cost" for those ones based on the market value at that time. Historical records for gold bullion prices do exist. This would reduce your taxable capital gain.


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## tenoclock

Hi JayB,

The day you become the resident of Canada for tax purposes, will be the day you will be ''deemed'' to acquire all this gold. The value of the gold on that day will become your cost basis for tax purposes. 

If you sell your gold that very day, there will be no tax - assuming same intra-day price. If you sell anytime after, you simply deduct your cost basis calculated based on the price the day you became resident from the proceeds. 

Simply put, you don't have to pay a lot of tax in Canada on your gold sale. I don't know if you have to pay tax in your Scandanavian country though.


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## OhGreatGuru

Good catch tenoclock. I forgot that was the rule for immigrants. Makes valuation much simpler. See CRA publication T4055:

_Deemed acquisitions
If you owned certain properties, other than taxable Canadian properties, while you were a non-resident of Canada, we consider you to have disposed of the properties and to have immediately reacquired them at a cost equal to their fair market value on the date you became a resident of Canada. This is called a deemed acquisition.

Usually, the fair market value is the highest dollar value you can get for your property in a normal business transaction.
You should keep a record of the fair market value of your properties on the date you arrived in Canada. The fair market
value will be your cost when you calculate your gain or loss from selling the property in the future._

PS; I know nothing about tax laws in Scandinavia, but if their capital gains taxes are like Canada's, then the country you are departing from may assess tax on the bullion you are leaving with.


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## uptoolate

yes very good catch!!


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