Allison Hill moved to Canada on April 30^th, 20x8. She was born and raised in Belgium and moved to Canada to start a career in architecture. She earned $45,000 from May to December in 20x8 from her new employer. Allison earned $10,000 of employment income from January to March in 20x8 while still living in Belgium. She also received $1,000 in dividends in March, 20x8 and $1,000 in dividends in September, 20x8 from stocks in a European corporation. Allison's parents sent her a cheque for $2,000 as a gift for her 25^th birthday in August, 20x8.
Required:
a) Determine Allison's residency status for Canadian tax purposes for 20x8.
b) How much income is Allison required to report on her T1 tax return for the 20x8 taxation year?
c) Explain why any items have been excluded from your calculations.

Question

Quizplus · Accepted Answer

The Answer is a) 'Part-year or part-time resident' or 'Resident as of April 30^th or April 30^th to December 31^st (or wording indicating knowledge of the concept) b) $45,000 (Canadian employment income) + $1,000 (dividend received while a Canadian resident for tax purposes) = $46,000 c) The following items have been omitted: Income from employment in Belgium prior to Allison becoming a Canadian resident Dividends received prior to becoming a Canadian resident Birthday gift from parents is not taxable

Allison Hill Moved to Canada on April 30th, 20x8

Allison Hill Moved to Canada on April 30^th, 20x8