Ontario Ltd. is a Canadian Controlled Private Corporation (CCPC). Mary Stewart, one of the employees, was granted a stock option on October 11, 2021 for 15,000 shares at $3 per share. Mary exercised the stock option on September 30, 2022 when the market price was $9 per share. In February 2023, Mary purchased a new home and sold the shares for $14 each. The fair market value on October 11, 2021 was $3. 

What is the effect of the above on Mary's taxable income, assuming Mary wants to minimize taxe?

Answer rating: 100% (QA)

Under Canadian tax laws the taxation of stock options for employees depends on whether the options are considered Qualified or NonQualified stock opti... View the full answer