Allison Hill moved to Canada on April 30th of this year. 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 of this year from her new employer. Prior to leaving Belgium, Allison earned $10,000 of employment
income. She also received $1,000 in dividends in March and $1,000 in dividends in September from stocks in a European corporation. Allison's parents sent her a cheque for $2,000 as a gift for her 25th birthday in August.
Required:
Determine Allison's residency status for Canadian tax purposes for the current year. How much inco Allison required to report on her T1 tax return? Explain why any items have been excluded from you calculations.

Question

Quizplus · Accepted Answer

The Answer is 'Part-year or part-time resident' or 'Resident as of April 30th or April 30th to December 31st (or wording indicating knowledge of the concept)
$45,000 (Canadian employment income)+ $1,000 (dividend received while a Canadian reside purposes)= $46,000
The following items have been omitted:
· Income from employer 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 of This