5.Granting of Options to Qualified Donees
•Budget proposes to delay the recognition
of a gift of an option to acquire
property given to a QD
•Previously, where a donor granted an
option to purchase property to a QD, the
gift was recognized on the date of the gift
and a receipt could be issued immediately for the fair market value of the option
•Budget proposes to delay recognition
until the option is exercised by the QD,
e.g. the property is purchased based on
the amount by which the fair market value of the property at that time exceeds the total of amounts paid by the QD
•New rules to coincide with proposed
split-receipting rules
•Effective for options granted on or after March 22, 2011
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