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ARTICLE · 09 AUGUST 2024

Changes To Employee Stock Option Deduction Calculation

Miller Thomson
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In the 2024 Federal Budget, the Department of Finance announced that capital gains realized by individuals on or after June 25, 2024 in excess of an annual $250,000 threshold will be subject to a two-thirds inclusion rate ...

CanadaTax
Thomas Ghag
Thomas Ghag
Aidan Skaf
Aidan Skaf
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In the 2024 Federal Budget, the Department of Finance announced that capital gains realized by individuals on or after June 25, 2024 in excess of an annual $250,000 threshold will be subject to a two-thirds inclusion rate for purposes of calculating the individual's taxable income. Capital gains realized by individuals below the threshold will still be subject to a one-half inclusion rate. See our previous report on these changes (Upcoming changes to the capital gains inclusion rate: Planning opportunities to reduce the impact of the new rules) for more details.

Legislation to implement these changes was released on June 10, 2024. The proposed amendments to the Income Tax Act (Canada) (the "Tax Act") include amendments that will affect the taxation of employee stock options. The changes are anticipated to be effective retroactive to June 25, 2024. Employees, employers, and their advisors must be aware of these changes to ensure that they are in compliance with the

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