In Lynnette's transactions, which of the following will be subject to taxation?

The correct answer pertains to taxable capital gains, which are income recognized for tax purposes on the sale of investments, such as stocks or funds, that have appreciated in value. In Lynnette's case, the option identifying taxable capital gains of $1,500 represents a gain that is subject to taxation. When capital gains are realized from the sale of an asset, they must be reported on tax returns, and the individual is required to pay taxes based on their marginal tax rate.

In contrast, capital gains or losses from funds held in registered accounts like a Tax-Free Savings Account (TFSA) are not subject to taxation. Therefore, any capital gains from her TFSA would not be taxable, which explains why that option is not subject to taxation. Similarly, while capital gains from her equity fund are taxable, the question centers on amounts categorized as 'taxable,' making the specific reference to the $1,500 gain crucial. On the other hand, capital losses can be used to offset taxable gains but are not directly subject to taxation themselves; hence, the capital loss is not a taxable event. This distinction helps clarify why the taxable capital gains would indeed incur tax liability.