The deduction is the total of the amounts in boxes L-9, L-10, L-12 and L-13 of your RL-1 slip. It is equal to 25% of the benefit deemed received in the year (or 50% or 33.33% of the benefit if certain conditions are met). To learn more, see guide IN-253-V, Taxable Benefits.

If you cashed out your security option rights without acquiring securities, you are entitled to the security option deduction, provided an amount is shown in box L-8 of your RL-1 slip, or in box 86 of your T4 slip (if you did not receive an RL-1 slip). If you are entitled to the deduction, enter on line 297 the amount shown in box L-9 or L-12 of your RL-1 slip. If you did not receive an RL-1 slip, enclose a copy of your T4 slip with your return and contact us.

Deferred taxation of the benefit from a security option

If you are including a taxable benefit in your income on line 101 because you disposed of shares or mutual fund units and had previously elected to defer taxation of the benefit until the year you disposed of the securities, you can enter, on line 297, an amount equal to 25% of the benefit included on line 101 or 50% of the benefit if certain conditions are met. For more information, see guide IN-253-V.

If you sold the shares or mutual fund units after June 24, 2024, the rate is 33.33% instead of 50%.

Foreign specialists

Special rules apply if, on line 101, you include a taxable benefit related to a stock option, and all three of the statements below apply to your situation.

• You carried out the duties of a foreign specialist: 
  • at an international financial centre; 
  • in the Montréal international trade zone at Mirabel, for a corporation that carried on an eligible business; or 
  • for a corporation operating a stock exchange business or a securities clearing-house business. 
• During the period in which you were entitled to deduct all or part of your income from all sources, you acquired stock options further to an agreement with your employer (or former employer) or a person related to your employer (or former employer). 
• You are no longer entitled to deduct all or part of your income from all sources.

For more information, contact us.

Donated securities

You can enter an additional deduction on line 297 because you exercised a security option if all of the following conditions are met:

• You donated mutual fund units or listed shares to a charity or other qualified donee in the year you acquired them, but no later than 30 days following the acquisition.
• You are including a taxable benefit on line 101 because you exercised an option to purchase such securities in 2024.
• There is an amount in box L-9 or L-12 of your RL-1 slip.

The additional deduction for donated securities varies depending on when you exercised the security option: 

• If you exercised the option before  June 25, 2024, it is equal to 50% of the amount included as a taxable benefit on line 101.
• If you exercised the option after June 24, 2024, it is equal to 66.67% of the amount included as a taxable benefit on line 101.

If you are entitled to the additional deduction and the fair market value of the units or shares at the time of the donation was less than their value when the option was exercised, contact us to determine the amount you can deduct.