Homework Problem 20-2,3 - Solution to Problem 20-2 Facts Mr...

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Solution to Problem 20-2 Facts: Mr. Leduc relocates to the U.S. on February 12. His spouse remains behind with the three children until June 20,once the family home is sold and the children finish school. Question: What is Mr. Leduc’s residence status? Solution: ITA indicates a person ceases to be a Canadian Resident on the latest of three dates: 1. The date on which the taxpayer departs from Canada 2. The date on which the taxpayer’s spouse and/or dependent children depart from Canada 3. The date on which residency is established in the country of destination Since the family departs Canada on June 20, that is the date on which Mr. Leduc would be considered a non- resident from the perspective of the Canadian tax authorities
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Implications: Mr. Leduc is a part-year resident, subject to Canadian taxes on his world wide income until June 20 (when his family leaves Canada and he ceases to be deemed a resident) Mr. Leduc is also subject to U.S. taxes commencing February 12 Mr. Leduc will receive Canadian tax credits for taxes
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This note was uploaded on 02/18/2011 for the course ECON 101 taught by Professor Professor during the Spring '11 term at American University of Antigua.

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Homework Problem 20-2,3 - Solution to Problem 20-2 Facts Mr...

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