REPORTING CAPITAL GAIN FROM EMPLOYEE STOCK OPTION/BENEFITS & TAXABLE BENEFITS Line 38 from Previous Years - Please Help

[YMONKEY]

How should i be reporting disposition of deferred employee stocks that were acquired from Y21-Y22 and sold in Y23 ? I've been made aware that I need to fill out a T1212 FORM, but do I add the taxable benefit Line 38 from previous T4s in Y21 and Y22 , and report as my opening balance in T1212 form? Also, when I report the capital gain amt$, why is there a line that asks to report Line 38 again ? What am I reporting in the capital gain section line that states "Stock Option Benefits included as employement income (T4 BOX 38)"
... Y21+Y22+Y23 OR would just be current Y23 ? How should I be accurately reporting disposition of employee stock options/benefits from previous years ? 

[Geo123]

Hello YMONKEY,

The deferred security options benefits sold in 2023 must be included in your employment income for the year in which you disposed of the security, have become non-resident or are deceased.
To enter the deferred benefits related to stock options and generate the T1212 form, please follow the steps below:
1. On the "Left-side menu on the Interview tab", select "T4 and employment income".
2. On the page appearing on the right, scroll down to "T1212" group, and click on the plus "+" icon to the right of the line "T1212 - Deferred employee stock options benefits".
3. For the line "Opening Balance of Deferred Stock Option Benefits", The opening balance of deferred stock option benefits is available from your previous year's Notice of assessment or Notice of reassessment.
4. Under the line "Stock option benefit that can no longer be deferred", enter the amount sold for these shares in 2023.
The closing balance will be shown on your notice of assessment.
The amount entered will be reported on line 10100 of the federal return and 50% will be claimed as a deduction for stock options and stock on line 24900.
Form T1212 will be generated by the program.
For residents of Quebec, the amount will be entered on line 101 and the deduction will be reported on line 297 of the Quebec return.
Capital Gains: If the stock options are qualified as deferred stock options, any gain on disposition of the stock may be eligible for capital gains treatment and should be entered to Schedule 3.
For more information, please visit the following CRA links:
https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/t1212.html
https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/payroll/benefits-allowances/financial/security-options/option-benefit-deductions.html