Reference no: EM132608786
Question - Amy and Kevin are married and they are Canadian residents. They are running a manufacturing business in Canada and they plan to sell the business in 2020 and retired. They took a family trip to Mexico in 2019 and fell in love with this country. They loved this vacation that they used Amy's money to buy a condominium there in 2020. They rent the condominium most of the time since then because they have been so busy with their business in Canada.
After the sale of the business, Amy and Kevin are planning a move to Mexico in November2020 to live in their vacation home and will pay someone to move all their personal belongings there, including their valuable artwork. Once they are settled in their home in Mexico, they will list their Canadian home for sale and probably won't ever come back. This will likely happen in the summer/fall of 2021. Their Canadian home will be rented in 2020 and 2021 until it is sold.
Kevin is an avid surfer, so he is planning to purchase a surfing club membership in Mexico. Unfortunately, he is unable to cancel his Canadian surfing club membership until March 31, 2021, so he will have to hold onto his Canadian membership until this time.
They will be giving their Toronto car to their daughter Gigi in case they need it when they visit Canada and will buy a new car in Mexico. Therefore, both Amy and Kevin will both get a driver's license in Mexico. They plan on opening up a bank account in Mexico and will reduce the number of bank accounts they have in Canada. They will leave all their RRIFs, TFSAs and their investment portfolio (all Canadian stocks) in Canada.
Required -
Amy and Kevin want to know whether they will continue to be residents of Canada after their move to Mexico in 2020? How this affect their tax returns and taxes owning for 2020 and subsequent years.
They would also like to know if any special filings have to be done in respect of their Mexican and Canadian homes.