If I was given stock options (options not stocks) valued at $5000 and I cashed out $6000, what is my proceeds disposition? What is my adjusted cost?

To calculate the ACB of your eligible securities, add the following two amounts:

• the actual purchase price
• any amount included in your income as a taxable employee option benefit for the securities (even if you claimed a security option deduction for them)

Your proceeds of disposition are what you sold them for.

If you acted on this stock option, the proceeds of disposition would be $6,000 and the adjusted cost base would be $5,000.

To learn more, please read this TurboTax article: Proceeds of Disposition 

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