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I'm Canadian, and I executed a "same-day-buy-and-sell" on options granted to me by my employer.

My T4 slip has the appropriate taxable benefit called out, but my question is, can I apply my previous year's capital losses to this "gain" to reduce some of my taxes payable?

Gascoyne
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Fred
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1 Answers1

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As I recall, the gain for ISOs is considered ordinary income, and capital losses can only negate up to $3000 of this each year.

If you exercised and held the stock, you have ordinary income to the exercise price, and cap gain above that, if you hold the stock for two years.

EDIT - as noted below, this answer works for USians who found this question, but not for the OP who is Canadian, or at least asked a question at it relates to Canada's tax code.

JoeTaxpayer
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