Which of the following is a method of calculating the taxable amount for capital gains?

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The method of calculating the taxable amount for capital gains is primarily done by taking the sales price and subtracting the purchase price. This calculation helps determine the actual gain realized on the sale of an asset, which is critical for tax purposes. The sales price represents the amount received from selling the asset, while the purchase price refers to what was originally paid for it. The difference between these two values reflects the profit, or capital gain, that may be subject to taxation.

In this context, total assets minus liabilities would provide a net worth figure but does not directly relate to capital gains. Similarly, market value minus expenses could reference the potential selling price after costs but does not specifically calculate the gain for tax purposes. Finally, income generated from investments is not relevant in calculating capital gains as it pertains to regular income rather than gains realized from the sale of an asset.