With an annual $200,000 cap now being applied on certain stock option tax deductions, Dov Begun and Colena Der shared their insights on these requirements during their Canadian Petroleum Tax Society (CPTS) 2022 Fall Lecture Series virtual seminar presentation.
The $200,000 cap is applied based on the fair market value of the securities on the option grant date, as well as the number of options vesting in the particular year. The cap is applied on an individual basis and is based on the year of vesting. In their presentation, Dov and Colena provided a high level overview and discussed a number of technical issues associated with these new rules.