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Stock option deduction

Also called employee stock option deduction, option tax, 110(1)(d)

A deduction under the Income Tax Act that can reduce the taxable benefit an employee has when exercising stock options, if conditions are met. For options granted by a CCPC, the taxable benefit is generally deferred until the shares are sold. Tax treatment depends on the facts, so employees should get tax advice.

In context How do I set up an employee option plan? Read the guide

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Related terms

Sources

  1. Income Tax Act, s. 7 (including s. 7(1.1) for CCPC options)
  2. Income Tax Act, s. 110(1)(d)

General information about Ontario and Canadian law, not legal advice. All terms