CRA notes that a s. 7(8) deferred gain is triggered on a s. 73 rollover

A stock option benefit which was deferred under s. 7(8) on a stock option exercise before March 4, 2010 will be triggered on a disposition of the shares, even if this is as a rollover under s. 73(1.01)(b) of the shares to the taxpayer’s ex-spouse on a matrimonial settlement. The triggered s. 7 gain will add to the ACB of the rolled-over shares.

Neal Armstrong. Summary of 27 September 2016 Internal T.I. 2015-0572901I7 under s. 73(1.01)(b).