Glossary term
Taxable capital gain
A taxable capital gain is the portion of a capital gain included in taxable income under the applicable inclusion-rate assumption.
Plain meaning
What taxable capital gain means
A capital gain is the gain before inclusion-rate treatment. A taxable capital gain is the part of that gain that enters taxable income.
Formula role
How OpenBook uses it
Capital-gain calculators estimate the gain first, then apply the stated inclusion-rate assumption to calculate the taxable capital gain. Tax calculators then treat that taxable amount as part of taxable income.
Common confusion
Gain and taxable gain differ
The taxable capital gain is not necessarily the full economic gain. OpenBook calculators state which inclusion-rate assumption is being used where that assumption affects the result.
Primary references