TN/TD Visa Closer connection exception

[choplife]

Hello,

Not sure if this was asked before, using the search was not successful. Any input/feedback is much appreciated.

My spouse and I are Canadian. Spouse is on a TN Visa and I am on a TD Visa, residing in California. We moved in February of 2024.

I have a business in Canada, specific industry licenses (corporate and personal), associations, etc. (all income/operations are 100% in Canada).
We have rental property and investments all in Canada, as well as a primary residence which we have access to at any time.

Based on my understanding of IRS rules we fall under "Closer connection exception to the substantial presence test” based on the above, which makes us tax residents of Canada and alien non-resident for tax purposes in USA.

If this is the case:

1. Does my spouse only file USA tax based on W2 (as married filing separately) with no need to disclose rental/investment income from Canada?
2. Since I cannot work and not claiming any benefits in the USA, there is no need for me to file taxes in USA?
3. We'll file Canadian taxes with CRA with any applicable foreign tax credits for my spouse.

Thank you in advance.

[nelsona]

The fact that you reside in California makes you a CDn non-resident, plain and simple. Where you and spouse reside overrides any financial ties in other countries.
File a departure return for 2024, and a full year 1040 and california return.