Determine the residency status for each of the following individuals and state the income tax implications of
Question:
Determine the residency status for each of the following individuals and state the income tax implications of each situation. Do NOT concern yourself with the application of the tie-breaker rules and/or tax treaties.
(1) Alpha had lived all of his life in Vancouver, B.C. until the current year, when he left with his family on August 27th to take up permanent residence in Los Angeles, California.
(2) Beta is a Canadian citizen, who has lived in the United States, with his family, for the past nine years.
(3) Gamma lives in Niagara Falls, New York (USA), but works Monday to Friday from 9:00 a.m. to 5:00 p.m. in an office in Niagara Falls, Ontario. He commutes to Ontario on a daily basis.
(4) Delta had lived all of his life in Dallas, Texas. He moved his family to Calgary, Alberta in January of this year to take a job in the oil industry. He returned to Dallas in August of this year. While in Canada, he had purchased a piece of property located in Calgary. The property was later sold during this year, after he left Calgary.
Concepts in Federal Taxation
ISBN: 9780324379556
19th Edition
Authors: Kevin E. Murphy, Mark Higgins, Tonya K. Flesher