Options

Commentary

In determining whether a gain from the disposition of a property, which was acquired on the exercise of an option, was realized on capital or...

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Cases

Imperial Stables (1981) Ltd. v. The Queen, 90 DTC 6135, [1990] 1 CTC 213 (FCTD), aff'd 92 DTC 6189 (FCA)

Martin J. could find no merit in the submission of the Crown that losses sustained by the taxpayer in engaging in "straddle" transactions in Dome...

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Cook v. The Queen, 87 DTC 5231, [1987] 1 CTC 377 (FCTD)

The court found that a school teacher married to a former real estate broker purchased 17 acres of rural land in 1971 as a means of financial...

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Hillsdale Shopping Centre Ltd. v. The Queen, 81 DTC 5261, [1981] CTC 322 (FCA)

Proceeds from the expropriation of an option to purchase land were on income account in light inter alia of the following factors:

  1. although the...

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Thom v. The Queen, 79 DTC 5324, [1979] CTC 403 (FCTD)

The plaintiff secured an option to purchase land used in an auto-parts business carried on by a company owned by him and his wife, in order to be...

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Westcon Engineering and Contractors Ltd. v. The Queen, 77 DTC 5398, [1977] CTC 567 (FCTD)

The taxpayer which had never been involved in trading aircraft, leased an aircraft for use in its business and obtained, as part of the lease...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 9 - Capital Gain vs. Profit - Commodities, and commodities futures and derivatives exercise of aircraft purchase option and immediate resale 105

See Also

Rogers Estate v. The Queen, 2015 DTC 1029 [at 124], 2014 TCC 348

The taxpayer, who was the CEO of a Canadian corporation ("RCI") whose voting and non-voting shares both traded on the TSX, did not deal at arm's...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 15 - Subsection 15(1) cash surrender of employee stock options for their value was not shareholder benefit 124
Tax Topics - Income Tax Act - Section 39 - Subsection 39(1) - Paragraph 39(1)(a) capital gain can arise from property which is not capital property 271
Tax Topics - Income Tax Act - Section 5 - Subsection 5(1) exercise of stock option surrender plan for FMV was not "remuneration" 121
Tax Topics - Income Tax Act - Section 7 - Subsection 7(3) - Paragraph 7(3)(a) s. 7 a complete code for taxation of stock option benefits 230

Richard Street v. Minister of National Revenue, 91 DTC 369, [1991] 1 CTC 2240 (TCC)

Given that at the time the taxpayer exercised his employee stock option to acquire 8,000 shares of his employer "it was his intention to dispose...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 9 - Computation of Profit income inclusion added to cost on general principles 43

Administrative Policy

30 May 2005 External T.I. 2005-0127861E5 - Securities transactions - capital gain or income

The taxpayer was involved in purchasing and selling share options on a daily basis in the taxpayer’s U.S.-dollar margin account and had agreed...

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28 May 2003 External T.I. 2003-0011605 - OEX INDEX OPTIONS

OEX S&P 100 index options are considered to be options, and not commodity futures, debt obligation futures or commodities, so that the...

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19 October 1999 External T.I. 9925055 - GAINS & LOSSES ON OPTIONS

Respecting a query as to whether a stock call written outside a registered retirement savings plan trust ("RRSP") in order to hedge a stock inside...

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May 1995 Executive Institute Round Table, Q. 24 (C.T.O. "Employee Stock Option")

Whether unexercised employee stock option rights become capital property to the estate of the deceased is a question of fact.

8 March 1994 External T.I. 9334005 - GAINS AND LOSSES ON STOCK INDEX FUTURES

Are gains or losses realized on stock index futures contracts by a "quasi-mutual fund unit trust" is a trust as described in s. 204.4(2)(d) on...

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IT-479R "Transactions in Securities"

Ordinary taxpayers generally entitled to capital treatment on share option transactions

For taxpayers, other than those described in 24 above [re...

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Articles

Ian Gamble, "Income from a Business or Property: General Principles and Current Issues", 2014 Conference Report, Canadian Tax Foundation, 5:1-32

[E]arlier decisions made in the context of option agreements are helpful and persuasive. The courts have looked to the nature of the property...

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