In the current tax year, Mr. Henderson realized a capital gain of $15,000 from the sale of Canadian publicly traded shares. He also incurred a capital loss of $5,000 from the sale of another investment. What amount of the net capital gain must Mr. Henderson include in his taxable income for the year?

Question: In the current tax year, Mr. Henderson realized a capital gain of $15,000 from the sale of Canadian publicly traded shares. He also incurred a capital loss of $5,000 from the sale of another investment. What amount of the net capital gain must Mr. Henderson include in his taxable income for the year?

Answer options:

• $15,000
• $10,000 ✅ $7,500
• $5,000

Correct answer: $7,500

Explanation: The net capital gain is $15,000 - $5,000 = $10,000. In Canada, 50% of the capital gain is included in taxable income, so 50% of $10,000 is $5,000.