In Canada, how are capital gains on non-registered investments generally treated for tax purposes?

Question: In Canada, how are capital gains on non-registered investments generally treated for tax purposes?

Answer options:

• 100% are taxed at the investor's marginal rate. ✅ 50% are included in income and taxed at the investor's marginal rate.
• They are entirely tax-exempt.
• They are taxed at a flat rate of 15%.

Correct answer: 50% are included in income and taxed at the investor's marginal rate.

Explanation: In Canada, only 50% of a capital gain is included in a taxpayer's income and taxed at their marginal income tax rate.