Global

Details

  • Service: Tax, International Executive Services, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 12/14/2012

Canada - Cashless stock option exercise shares  

December 14:  In certain circumstances, a taxpayer may be able to isolate the adjusted cost base (ACB) of newly purchased stock option shares by treating them as a class of shares that is separate from other identical shares that the taxpayer already owns.

To qualify for this separate class treatment under subsections 7(1.31) and 47(3), certain conditions must be met—including that the stock option shares must have been bought and sold within a 30-day period.


Choosing this alternative may limit the amount of taxable capital gain resulting from the disposition of the newly acquired stock option shares


Read a December 2012 report prepared by the KPMG member firm in Canada: Cashless Stock Option Exercise Shares - Use Better-Than-Average ACB





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