Answer the following question:

Using subdivision a: Income or loss from an office or employment. The Inclusions are Section 5,6,7. The Deductions are Section 8.

Indicate which section each would belong in for example 6 (1) (a) using subdivision A.

Gifts >500 taxable

Reimbursements - not taxable

Discounts - not taxable unless the discount goes below the cost to the company it is taxable

Annual professional dues for employees - not taxable

Tax return preparation - taxable

House loans - not taxable unless interest rate on an employee loan is less than prescribed rate

Explain what Division E is and what is included.

For example, Division E qualify for tax credits deductible.

• EI contributions
• CPP Contributions