The taxable capital gain from the sale of an investment held for at least 12 months can potentially be calculated in which of the following ways?

Question

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The taxable capital gain from the sale of an investment held for at least 12 months can be calculated through indexation method or discount method. Indexation method considers the inflation factor and adjusts the acquisition cost of the investment to determine the taxable gain. Discount method applies a 50% discount to the capital gain before including it in the taxpayer's income. Sale price plus purchase price (B) and purchase price less sale price (C) are not methods used to calculate the taxable capital gain.

The Taxable Capital Gain from the Sale of an Investment