2 Computing Income — The Structural Framework

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Lyrics

[Verse 1]
Section three breaks down the blueprint clear
Employment wages, business profit here
Property dividends and rental streams
Capital gains from selling dreams
Four sources feeding income's well
Plus other sources the Act will tell

[Chorus]
Employment, business, property, gains
Stewart's test through logic's chains
Source-based thinking guides the way
Net income computed day by day
Division C deductions fall
Taxable income conquers all

[Verse 2]
Stewart case from two-thousand-two
Personal pursuit or profit's due?
Commercial activity must be real
Not just a hobby with tax appeal
Reasonable expectation gone
Source exists when profit's drawn

[Chorus]
Employment, business, property, gains
Stewart's test through logic's chains
Source-based thinking guides the way
Net income computed day by day
Division C deductions fall
Taxable income conquers all

[Bridge]
Aggregate the sources first
Add them up from best to worst
Subtract the losses where they fit
Net income emerges from the pit
Division C takes center stage
RRSP and moving's wage

[Verse 3]
Ordering rules must be obeyed
Deductions in their sequence played
Loss carryovers find their place
Personal exemptions show their face
From net income to taxable
Following rules unshakeable

[Chorus]
Employment, business, property, gains
Stewart's test through logic's chains
Source-based thinking guides the way
Net income computed day by day
Division C deductions fall
Taxable income conquers all

[Outro]
Four sources feeding Canada's plan
Stewart's wisdom guides your hand
Net to taxable the journey flows
Following where the structure goes

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