What I Wish I'd Known About Equity Before Joining a Unicorn

Re:What I Wish I'd Known About Equity Before Joining a Unicorn by uiri on Wednesday January 18, 2017 @10:27AM (#13426965)

Just to clarify for those who may be less familiar with Canadian tax rules: Canadian-controlled private corporation is exactly what it sounds like and has special tax rules (including lower tax rates) in Canada.

I interpret the parent as referring to options in a corporation that is not a CCPC rather than options in a private corporation controlled by non-Canadians.

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Re:What I Wish I'd Known About Equity Before Joining a Unicorn by zzalpha on Wednesday January 18, 2017 @11:01AM (#13427284)

Correct. Options exercised in a CCPC don't result in a tax hit until the shares are liquidated.

Options exercised in a non-CCPC are subject to income tax on the difference between strike price and FMV of the shares at the time of exercise.

Fun!

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