Which of the following statements with respect to capital gains is correct?

Question

Quizplus · Accepted Answer

The favourable taxation of capital gains is designed to partially compensate businesses for the effects of inflation. This is because capital gains are only taxed on the increase in real value of an asset, instead of the nominal value, which could be subject to inflation. The inclusion rate for taxable capital gains has not always been one-half and varies depending on the type of capital gain and the year it was realized. While most gains on the sale of Canadian securities are treated as capital gains, there are exceptions. The lifetime capital gains deduction is still available to Canadian individuals, but the amount has been reduced over the years.

Which of the Following Statements with Respect to Capital Gains