The criteria for claiming the capital gains deduction on the sale of Qualified small business corporation shares (QSBC) can be found here:
http://www.taxplanningguide.ca/tax-planning-guide/section-3-investors/qualified-small-business-corpo...
With respect to where to put the info in TurboTax, generally you will report the sale of the shares under Income/Investments and then choose the option where you would indicate you sold shares of a Qualified small business corporation (once you do that it should automatically allow the capital gains deduction claim).
