Options Trading Tutorial

Is a capital loss on an Employee Stock Option tax deductible?

If the options were given out as a "retention incentive" (an incentive for the employee to stay with the company), and they expire as a loss, is it deductible? (in Canada btw) thanks oh, I didn't mean a loss as a result from exercising the option, but rather the loss of the premium. thanks for pointing out the obvious though

Public Comments

1. Only if you buy and sell the stock. Then you get a deduction, but unless your tax rate is 100%, you'll lose more in cash than you'd get back in tax.