Share Options

Question 1

When are CCPC stock options taxed?

Answer 1

When you sell the shares, not when you exercise.

Question 2

When are public company options taxed?

Answer 2

At exercise — on the spread between FMV and exercise price.

Question 3

What’s the 50% stock option deduction?

Answer 3

It reduces taxable income from stock options by half.

Question 4

What conditions must be met for public company stock option deduction?

Answer 4

Exercise price ≥ FMV at grant + common shares only.

Question 5

What is taxed as capital gain for stock options?

Answer 5

Any gain from FMV at exercise to final sale price.

Question 6

What’s the benefit of holding CCPC shares for 2+ years after exercising?

Answer 6

You qualify for the 50% deduction on the employment income portion.

Question 7

If you exercise and sell CCPC shares immediately, do you get the 50% deduction?

Answer 7

No — you must hold shares for at least 2 years after exercising.