April 2017 Newsletter

You can often deduct child care expenses that enable you to carry on your employment or business, or to attend school. The types of expenses that qualify include those for baby-sitting, day care, nanny services, and certain boarding schools and camps. Your children must be under the age of 16 at some time during the year, otherwise both dependent upon you and having a mental or physical infirmity.

If a relative with a mental or physical infirmity is dependent upon you for support, you may qualify for one of the tax credits discussed below in respect of the dependant. The monetary amounts listed are for 2017; the amounts are indexed each year for inflation.

There are two basic types of options. A “call option” is an option that gives the option holder the right to purchase a property at a set price (sometimes called the exercise price or strike price). A “put option” is an option that gives the option holder the right to sell a property at a set price. In either case, because the right is an “option”, it obviously is not mandatory for the option holder to exercise it.

The concept of “associated corporations” is relevant for various purposes under the Income Tax Act, most of which relate to beneficial tax preferences that would otherwise apply to the corporations.

Employee stock options taxed in full

Normally, one-half of an employee stock option benefit is deducted in computing taxable income, which means that only half the benefit is taxable. However, certain conditions must be met in order to claim the one-half deduction. If the conditions are not met, then the entire stock option benefit is taxable.