Luca Jacobs Moved to Canada on April 30^th, 2020

question 11

Essay

Luca Jacobs moved to Canada on April 30^th, 2020.Luca was born and raised in Belgium and moved to Canada to start a career in architecture.Luca earned $45,000 from May to December in 2020 from the architecture firm.Luca earned $10,000 of employment income from January to March in 2020 while still living in Belgium, and also received $1,000 in dividends in March 2020 and $1,000 in dividends in September 2020 from stocks in a European corporation.Luca' parents e-transferred $2,000 as a gift for Luca' 25^th birthday in August, 2020.
Required:
a) Determine Luca' residency status for Canadian tax purposes for 2020.
b) How much income is Luca required to report for the 2020 tax year?
c) Explain why any items have been excluded from your calculations.

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Definitions:

Supporting Services Expenses

Costs incurred for activities that assist the core operations of a business but do not directly contribute to production.

Journal Entry

A recording in the accounting ledger that represents a single transaction and its effect on the accounts, consisting of at least one debit and one credit.

Not-for-Profit

Organizations that operate for purposes other than generating profit, investing income back into their missions and activities to benefit society or specific groups.

Statement of Financial Position

A financial statement detailing an organization's assets, liabilities, and equity at a specific point in time; another term for a balance sheet.