If you purchased stock options from your employer between February 27, 2000 up to and including 4:00 p.m. EST on March 4, 2010, and you chose to defer the benefits of these security options, you’ll have to complete form T1212.
Form T1212 is used to keep track of your deferred security options benefits, and must be completed every year when preparing your tax return as long as you’ve an outstanding balance of deferred security option benefits (regardless if you’ve deferred any options this year or disposed of any securities that were previously deferred).
What does it mean to defer security option benefits?
If you purchase shares through an employee security option, the taxable benefit isn’t included in your income the year the purchase was made. Instead, the taxable benefit is added as income in the year you:
- sell these shares
- become a non-resident of Canada or
- pass away
Where do I claim this?
Follow these steps in H&R Block’s 2017 tax software:
- On the PREPARE tab, click the IN THIS SECTION icon.
- Under Employment expenses (home office, tools, etc.), credits or deductions related to your job, and employment income that's not show on a slip (tips, royalties, etc.), click the Add This button.
- Click the EMPLOYMENT icon. You’ll find yourself here:
- Under the EXPENSES heading, select the checkbox labelled, Statement of deferred security options benefits (T1212), then click Continue.
- When you arrive at the page for your T1212, enter your information into the tax software.