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| | A, B, C's of Canada's New Employee Stock Option Regime |
 | | The $100,000 annual limit on the fair market value of options available for the deferral applies to the year of vesting the year the employee gains the right to exercise the options under the terms of the option agreement and not to the year in which the option is actually exercised. |
 | | For example, say an employee is granted options for 20,000 shares with an exercise price of $10 per share ($200,000 in total), which is their fair market value at the time the options are granted. |
 | | To be eligible for the deduction, employees must work for an eligible research corporation and they must spend at least 30 percent of their time directly undertaking, supervising, or supporting research and development in the corporation's tax year in which the stock option agreement is entered into. |
| www.us.kpmg.com /microsite/tax/ies/tea/winter/stories/article03.htm (1963 words) |
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