The client emigrated from Canada to the U.S. with his family on January 2, 2024. His wife continued to work remotely from the U.S. for a Canadian employer until March 2024 and received a T4 slip for that period. The husband has been employed with a U.S. employer since 2022 and receives a W-2. It is noted that he filed his 2023 Canadian tax return as a resident.
Since the client and his family left Canada in January 2024, and his principal residence was converted into a rental property at the time of departure, the husband is considered a non-resident of Canada as of the date of emigration, as he does not have primary ties in Canada.
For their 2024 Canadian tax filings, I would appreciate your guidance on the following:
- How should the spouse’s T4 income (earned after emigration) be reported — should it be included on the T1 general return as a resident?
- My understanding is that the rental income should be reported on a Section 216 return from the date of departure until the end of the year.
Any insights or references to relevant CRA guidance would be greatly appreciated!