An investor realizes a capital gain of $10,000 from the sale of Canadian publicly traded shares. Assuming the current capital gains inclusion rate, how much of this gain will be subject to taxation?

Question: An investor realizes a capital gain of $10,000 from the sale of Canadian publicly traded shares. Assuming the current capital gains inclusion rate, how much of this gain will be subject to taxation?

Answer options:

• $2,500 ✅ $5,000
• $7,500
• $10,000

Correct answer: $5,000

Explanation: In Canada, the capital gains inclusion rate is 50%. Therefore, 50% of the $10,000 capital gain, or $5,000, will be added to the investor's income for tax purposes.