Tanya, an employee of a Canadian Controlled Private company, received an option to purchase 1,000 common shares of her employer at $30 per share in April 2018, when the shares were worth $19 per share. In December 2019, when the fair market value was $40 per share, she exercised her options. In January 2020, she sold all the shares for $48 per share. 

Required:

What income inclusion (employee benefit) she will have to report on her 2019 tax return . She wants to pay the lowest amount of taxes possible.

Answer rating: 100% (QA)

In Canada when an employee exercises stock options there may be a taxable employment benefit that ne... View the full answer