Under what circumstances is an individual entitled to a deduction equal to one-half of the employment income inclusion resulting from exercising or selling stock options?

Question

Quizplus · Accepted Answer

The Answer is If the issuing corporation is a publicly traded Canadian company, the deduction is only available when the option price is equal to or greater than the fair market value of the shares at the time the options were issued.
If the issuing corporation is a Canadian controlled private corporation, the deduction is available if the shares are held for two years, without regard to whether the option price was above or below the fair market value of the shares at the time the options were issued.
However, if the shares are not held for two years, the availability of the deduction is subject to the same condition that is applicable to public companies. That is, the option price must be equal to or greater than the fair market value of the shares at the time they were issued.

Under What Circumstances Is an Individual Entitled to a Deduction