• How do you report income distributions for individuals?

    Attention

    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

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    When you transfer information from your client's partnership or trust return to their individual return, make sure the information in both returns match. Pay particular attention to the labels at item 13 - Partnerships and trusts in the individual return (supplementary section).

    We have noticed that some partnership and trust distributions to individuals are being reported incorrectly at the following items in the individual return:

    • salary or wages
    • interest on investments
    • dividends
    • personal services income
    • net business income or loss
    • rent
    • other income.

    You need to report all these income amounts at item 13.

    TaxPack supplement 2011: item 13

    Attention

    To report all distributions your client received from partnerships or trusts accurately, you may need to complete more than one label under item 13.

    Also, if clients have a net loss from a partnership business activity, you must also complete items P3 and P9 in the Business and professional items schedule for individuals 2011 (NAT 2816).

    For more information about item 13, refer to:

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    Last modified: 13 Oct 2011QC 25050