Question No. 1

W and H, wife and husband, are citizens of Canada. They do not have U.S. citizenship nor do they hold a U.S. green card. They maintain homes in both Quebec and Florida. W and the couples minor children spend about nine months each year at the Florida home, and the children attend school in Florida public schools. W and the children spend the summer months (80 days) in Quebec. H, who owns a construction company in Quebec, spends most of the year in Quebec, but makes several trips to Florida each year, aggregating 70 days annually. Hs income comes from the construction business. W owns several farms in Quebec which are rented to tenants and produce a significant amount of rental income. H & W do not file a joint return in the U.S.

How are H and W taxed by the U.S.?

How does the analysis of Hs situation change if he stays in the U.S. a total of 125 days annually.

Question No. 2

Nelson is a citizen of Brazil. He has a full-time job in that country and generally lives there with his family in a home he has owned for over 20 years. In 2012, Nelson comes to the United States for the first time. The sole purpose of the trip is business. Nelson intends to stay in the U.S. for only 180 days, but he runs into problems with his business and is required to stay 300 days.

In 2013, Nelson comes to the U.S. again on business and stays for 90 days. He returns to Brazil as planned.

Early in 2014, Nelson comes to the United States on business and stays for 170 days. Later in 2014, he returns to the U.S. to take his 6 year old son to Disney World for 10 days and then return to Brazil. On the last day of the planned visit, Nelson breaks his leg in an automobile accident. He is checked into the hospital for treatment, where he remains for five days. Nelson and his son leave the U.S. as soon as possible after he is released from the hospital.

Under these facts, discuss Nelsons residence status in the U.S. in 2012, 2013 and 2014.