Let $g(x) = \ln(1+x)$ for $x>-1$. Use the inequality $\lim_{x \to 0}{x-\frac{x^2}{2}} \leq \lim_{x \to 0}{\ln(1+x)} \leq \lim_{x \to 0}x$ to prove that $g$ has a limit at $x = 0$.
For the left side of the inequality: Let $\epsilon>0$. Take $\delta = \min(\epsilon, \sqrt{2\epsilon})$. Then, we have that $|x| < \delta$. We note that, if $x$ is in the interval $(-1, 1)$, $|x-\frac{x^2}{2}| \leq |x| < \delta = \epsilon$. Now if $x$ is in the complement of that interval, we note that $|x-\frac{x^2}{2}| \leq |\frac{x^2}{2}|.$ Moreover, $|x|<\sqrt{2\epsilon} \implies |\frac{x^2}{2}| < \epsilon $. Thus, this function has a limit at x = 0
For the right side of the inequality: Let $\epsilon > 0$. Take $\delta = \epsilon$. We have that $|x| < \delta = \epsilon$. Thus the limit of this function exists at $x = 0$. By the squeeze thereom, $g$ has a limit at $x = 0$
Is my proof correct?
There is an easier way to do this using the Squeeze Theorem.
It seems you are trying to prove that $\lim_{x \to 0} \ln(1+x) = 0$ via the definition of a limit. But using the inequality that was given $$\lim_{x \to 0} x- \frac{x^2}{2} \leq \lim_{x \to 0} \ln(1+x) \leq \lim_{x \to 0} x$$
and the knowledge that $x- \frac{x^2}{2}$ and $x$ are continuous functions (since they are polynomial functions as Gabrielek points out above) we know that $\lim_{x \to 0} x- \frac{x^2}{2} = 0 - \frac{0^2}{2} = 0$ and $\lim_{x \to 0} x = 0$. Can you now see how to use the Squeeze Theorem and the above inequality to conclude that $\lim_{x \to 0} \ln(1+x) = 0$?