Business and professional items

37 Business name of main business

The business name of the main business activity should be consistent from year to year, except in the year of a name change or if it is no longer the main business.

If the business name is legally changed, send written advice of the change to us at the time the change is made. Show the current business name on the tax return.

38 Business address of main business

Show the street address of the main business. This is the place where most of the business decisions are made. Ensure that you include the postcode at A.

Items 39 to 40 below reflect amounts that have been calculated for tax purposes.

39 Opening stock

Show at C the total value of all trading stock on hand at the beginning of the income year or accounting period for which the partnership tax return is being prepared. The amount shown by the partnership at C is the calculated value for income tax purposes under section 70-40 of the ITAA 1997, or for small business entities using the simplified trading stock rules (subsection 328-295(1) of the ITAA 1997). The opening value of an item of stock must equal its closing value in the previous year. If you did not have any trading stock in the previous year, the value of trading stock at the start of the year is zero. This might occur in the case of a new business, or in the first year you have trading stock.

Include motor vehicle floor plan stock and work in progress of manufactured goods.

Do not include any amount that represents opening stock of a business that started operations during the income year. Show this amount E Cost of sales item 5.

40 Purchases and other costs

Show at B the cost of direct materials used for manufacture, sale or exchange in deriving the gross proceeds or earnings of the business.

Former STS taxpayers still using the STS accounting method

If the partnership is eligible and has chosen to continue using the STS accounting method, only show at B purchases and other costs which the partnership has paid. See Continued use of the STS accounting method.

41 Closing stock

If the partnership is a small business entity choosing to use the simplified trading stock rules, see the information for small business entities below. Otherwise, go to All other businesses.

Small business entities

Small business entities only need to account for changes in the value of trading stock if the value of stock on hand at the start of the income year and a reasonable estimate of the value of stock on hand at the end of the income year varies by more than $5,000.

For more information on ‘reasonable estimate’, see Simplified trading stock rules or phone 13 28 66.

Small business entities who wish to do so can still conduct a stocktake and account for changes in the value of trading stock.

If the difference between the value of opening stock and a reasonable estimate of closing stock is more than $5,000, the partnership must account for the change in the value of trading stock, go to step 2. If the difference is not more than $5,000, go to step 1.

Step 1

If the difference referred to above is $5,000 or less and the partnership chooses not to account for this difference, the closing stock value at D is the same as the value at C item 39. Do not put the reasonable estimate at D.

Print in the CODE box at the right of D the code letter from table 6 that matches the code the partnership used to value closing stock in the previous year.

Table 6

Code	Valuation method
C	Cost
M	Market selling value
R	Replacement value

If this is the partnership’s first year in business, the value of the closing stock in the previous year will be zero; print C in the CODE box. You have now finished with this question.

Step 2

If the difference referred to above is more than $5,000 or the partnership chooses to account for the difference in trading stock, the closing stock values must be brought to account under section 70-35 of the ITAA 1997. See the information for All other businesses for instructions on how to calculate the value of closing stock.

The partnership must include in the closing stock value at D the value of all stock on hand, regardless of whether the partnership has paid for the stock.

All other businesses

Show at D the total value of all trading stock on hand at the end of the income year or accounting period for which the partnership tax return is being prepared. The amount at D is the value calculated for income tax purposes under section 70-45 of the ITAA 1997.

If the partnership is registered for GST or required to be registered for GST, the value of closing stock (other than items the supply of which was not a taxable supply) should not include an amount equal to the input tax credit that would arise if the partnership had acquired the item solely for business purposes at the end of the income year. Some items of trading stock (such as shares) are not subject to GST, meaning there will be no input tax credits to consider.

Include motor vehicle floor plan stock and work in progress of manufactured goods.

Do not include any amount for closing stock of a business that ceased operations during the income year; show this amount at Total business income item 5.

Print in the CODE box the code from Table 6 indicating the method used to value closing stock for income tax purposes. If you use more than one method, use the code for the method representing the greatest value.

You can use different methods to value the same item of trading stock in different income years, and you can value similar items using different methods in the same income year.

However, the opening value of an item in a particular income year must equal the closing value for that item in the previous income year. The partnership cannot reduce the value of stock on hand by creating reserves to offset falls in the value of stock or any other factors. Keep records showing how each item was valued.

The partnership may elect to value an item of trading stock below the lowest value calculated by any of these methods because of obsolescence or other special circumstances, but the value in the election must be reasonable. If you elect to value an item of trading stock below cost, market selling value and replacement value, see item 47 Trading stock election.

If you include incorrect trading stock information on the tax return, advise us by submitting a full statement of the facts, accompanied by a reconciliation of the value of stock as returned for each income year with the values permissible under the law.

Partnerships engaged in manufacturing include the value of partly manufactured goods as part of their stock and materials on hand at the end of the income year.

For information on the circumstances in which packaging items held by a manufacturer, wholesaler or retailer are ‘trading stock’ as defined in section 70-10 of the ITAA 1997, see TR 98/7 Income tax: whether packaging items (ie, containers, labels etc) held by a manufacturer, wholesaler or retailer are trading stock.

Items 42 and 43 below reflect amounts calculated for accounting purposes.

42 Trade debtors

Show at E the total amounts owing to the partnership at year end for goods and services provided during the income year, that is, current trade debtors. Include this amount at item 33 All current assets.

43 Trade creditors

Show at H the total amounts owed by the partnership at year end for goods and services received during the income year, that is, current trade creditors. Include this amount at item 35 All current liabilities.

Items 44 and 45 below reflect amounts that have been calculated for tax purposes.

44 Total salary and wage expenses

Show at L the total salary, wages and other labour costs actually paid or payable to persons employed in the partnership’s business. However, exclude those costs for private domestic assistance or which form part of capital expenditure, as they are not deductible.

You cannot deduct salary and wage expenses where you have not complied with your pay as you go (PAYG) withholding obligations. See Removing tax deductibility of non-compliant payments

A partner cannot be an employee of a partnership. You cannot claim a deduction for partners’ salaries, nor can partners’ salaries create or increase a partnership loss. In reality, partners’ salaries are an allocation or advancement of profits before general distribution and are not taken into account in calculating the net partnership income or loss. See TR 2005/7 Income tax: the taxation implications of ‘partnership salary’ agreements.

You can only claim a deduction for a payment made or liability incurred by a partnership to an associated person, principal, agent, related entity or associate entity if it is incurred in producing assessable income and we are satisfied that the amount is reasonable.

These expenses include any salary and wage component shown at E Cost of sales item 5, such as:

• allowances
• bonuses
• casual labour
• retainers and commissions paid to people who received a retainer
• workers’ compensation paid through the payroll
• direct and indirect labour costs
• directors’ fees
• holiday pay
• locums
• long service leave
• lump sum payments
• other employee benefits
• overtime
• payments under an incentive or profit-sharing scheme
• retiring allowances
• sick pay.

Include here and at item 45 Payments to associated persons any salary or wages paid to an associated person, principal, agent, related entity or associate entity.

However, these expenses do not include:

• agency fees
• contract payments
• sub-contract payments
• service fees
• superannuation
• management fees
• consultant fees.

Print in the CODE box the code from table 7 that shows where you predominantly reported salary and wage expenses.

Table 7

Salary and wages wholly or predominantly reported in:	Code
the expense component of Cost of sales	C
All other expenses	A
the expense component of both Cost of sales and All other expenses	B
neither Cost of sales nor All other expenses	O

45 Payments to associated persons

For partnerships, show at M the amounts, including salaries, wages, commissions, superannuation contributions or allowances, paid to:

• a relative of a partner
• another partnership in which a relative is a partner
• a shareholder or director (or their relatives) of a private company that is a partner in the partnership
• a beneficiary (or a relative of a beneficiary) of a trust where the trustee is a partner in the partnership.

Do not show at M the amounts paid to a partner in the partnership.

Also, include the amounts of salaries and wages paid to an associated person, relative, principal, agent, related entity or associate entity at item 44 Total salary and wage expenses.

Record keeping

Excessive payments to a relative or other related entity may not be deductible (see section 26-35 of the ITAA 1997). Keep a record of the following to establish the reasonableness of remuneration:

• full name of relative or other related entity
• relationship
• age, if under 18 years old
• nature of duties performed
• hours worked
• total remuneration
• salaries or wages claimed as deductions
• other amounts paid, for example, retiring gratuities, bonuses and commissions.

46 Fringe benefit employee contributions

Show at T all the payments the partnership has received from recipients of fringe benefits.

Employee contributions form part of the employer’s or associate’s assessable income in situations where employees make payments for fringe benefits they have received.

47 Trading stock election

The partnership may elect to value an item of trading stock below the lowest value of cost, market selling value, or replacement value because of obsolescence or any other special circumstances, however, the value it elects must be reasonable. For more information on trading stock valuations where obsolescence or other special circumstances exist, see TR 93/23 Income tax: valuation of trading stock subject to obsolescence or other special circumstances.

If the partnership makes an election, print X in the Yes box at this item, otherwise, print X in the No box.

48 Capital allowances

Small business entities

You do not include information at this item if you are a small business entity that has chosen to use the simplified depreciation rules. Broadly, a small business entity for the purpose of the simplified depreciation rules is a business with an aggregated turnover of less than $10 million.

For information about these rules, see Small business entity concessions.

Depreciating assets first deducted in 2019–20

Intangible depreciating assets first deducted

Show at A the cost of all intangible depreciating assets for which the partnership is claiming a deduction for decline in value for the first time.

The following intangible assets are regarded as depreciating assets (as long as they are not trading stock):

• certain items of intellectual property, such as patents, registered designs, copyrights and certain types of licences of these
• computer software, or a right to use computer software, that the partnership acquires, develops or has someone else develop for its own use (that is, in-house software)
• mining, quarrying or prospecting rights and information
• spectrum licences
• datacasting transmitter licences
• certain indefeasible rights to use telecommunications cable systems (IRUs)
• some access rights to telecommunications sites.

A depreciating asset that the partnership holds starts to decline in value from the time the partnership uses it (or installs it ready for use) for any purpose, including a private purpose. However, the partnership can only claim a deduction for the decline in value to the extent it uses the asset for a taxable purpose, such as for producing assessable income.

If the partnership has allocated any intangible depreciating assets with a cost of less than $1,000 to a low-value pool for the income year, also include the cost of those assets at A. Do not reduce the cost for estimated non-taxable use.

Do not include expenditure on in-house software which has been allocated to a software development pool.

Other depreciating assets first deducted

Show at B the cost of all depreciating assets (other than intangible depreciating assets) for which the partnership is claiming a deduction for the decline in value for the first time.

A depreciating asset the partnership holds starts to decline in value from the time the partnership uses it (or installs it ready for use) for any purpose. However, the partnership can only claim a deduction for the decline in value to the extent it uses the asset for a taxable purpose, such as for producing assessable income.

If any assets (other than intangible depreciating assets) costing less than $1,000 have been allocated to a low-value pool for the income year, also include the cost of those assets at B.

Include here the cost of assets for which the partnership is claiming an immediate deduction under the instant asset write off rules.

Do not reduce the cost for any estimated non-taxable use.

Backing business investment – accelerated depreciation

Measures introduced in March 2020 provide an incentive to businesses with aggregated turnover of less than $500 million in the income year, to deduct the cost of depreciating assets at an accelerated rate. This applies to eligible assets held and first used or installed ready for use from 12 March 2020 until 30 June 2021.

For each new asset, the accelerated depreciation deduction applies in the income year that the asset is first used or installed ready for use for a taxable purpose. You claim the deduction when lodging your tax return for the income year. The usual depreciating asset arrangements apply in the subsequent income years that the asset is held.

For more information see Backing business investment – accelerated depreciation

Self-assessment of effective life

For most depreciating assets, you can choose to:

• work out the effective life yourself (self-assess), or
• adopt the Commissioner’s determination in Taxation Ruling TR 2019/5 Income tax: effective life of depreciating assets (applicable from 1 July 2019).

If you have adopted the Commissioner’s effective life determination for all your depreciating assets print X in the No box at C.

If you have self-assessed the effective life of any of your depreciating assets, print X in the Yes box at C.

For all depreciating assets

Recalculation of effective life

You may recalculate the effective life of assets in certain circumstances if the effective life you have been using is no longer accurate. There are also circumstances where you must recalculate the effective life of a depreciating asset.

If you have not recalculated the effective life of any of your depreciating assets in this income year, print X in the No box at D.

If you have recalculated the effective life of any of your depreciating assets in this income year, print X in the Yes box at D.

Total adjustable values at end of income year

At E, write the total of the adjustable values of your depreciating assets as at the end of the income year.

If the partnership has allocated any assets with a cost of less than $1,000 to a low-value pool, do not include the adjustable values of those assets at E Total adjustable values at end of income year.

Assessable balancing adjustments on the disposal of intangible depreciating assets

At F, write the total assessable income you have from balancing adjustment events on the disposal of intangible depreciating assets that occurred this income year (this type of assessable income may arise if, for example, you disposed of a depreciating asset for more than its adjustable value). If you do not have any assessable balancing adjustment amount this year, leave this label blank. For more information, see Appendix 6.

If the partnership has allocated any assets with a cost of less than $1,000 to a low-value pool, do not include the assessable balancing adjustments for these assets at F Assessable balancing adjustments on the disposal of intangible depreciating assets.

Deductible balancing adjustments on the disposal of intangible depreciating assets

At G, write the total deductible amount you have from balancing adjustment events on the disposal of intangible depreciating assets that occurred this income year (this type of deduction may arise if, for example, you disposed of a depreciating asset for less than its adjustable value). If you do not have any deductible balancing adjustment amount this year, leave this label blank. For more information, see Appendix 6.

If the partnership has allocated any assets with a cost of less than $1,000 to a low-value pool, do not include the assessable balancing adjustments for these assets at G Deductible balancing adjustments on the disposal of intangible depreciating assets.

Termination value of intangible depreciating assets

Show at H the termination value of each balancing adjustment event occurring for intangible depreciating assets to which the UCA rules applied, including assets allocated to a low-value pool.

Do not show at H any consideration received during the income year for in-house software for which the partnership has allocated expenditure to a software- development pool.

The relevant law states that a balancing adjustment event occurs if:

• you stop holding the asset, or
• you stop using it and expect never to use it again, or
• you have not used it and you decide never to use it.

Generally, the termination value is the amount the partnership receives or is deemed to receive for the balancing adjustment event. It includes the market value of any non-cash benefits, such as goods and services the partnership receives for the asset.

Termination value of other depreciating assets

Show at I the termination value of each balancing adjustment event occurring for depreciating assets, including assets allocated to a low-value pool.

Do not show at I any consideration received during the income year for:

• depreciating assets allocated in a prior year to a general small business pool (including assets reallocated to the general small business pool from a former long-life small business pool)
• intangible depreciating assets
• buildings or structures for which a deduction is available under the capital works provisions
• assets used in research and development (R&D) activities, or
• assets falling within the provisions relating to investments in Australian films.

A balancing adjustment event occurs if the partnership stops holding or using a depreciating asset and expects never to use it again, or decides not to use it in the future, for example, assets sold, lost or destroyed. Generally, the termination value is the amount the partnership receives or is deemed to receive for the balancing adjustment event. It includes the market value of any non-cash benefits, such as goods and services the partnership receives for the asset.

Deduction for project pool

Show at J the partnership’s deductions for project pools. For more information, see Appendix 6.

Section 40-880 deduction

Show at K the total of the partnership’s deductions allowable under section 40-880 of the ITAA 1997. For more information, see Appendix 6.

For more information on deductions you can claim for depreciating assets and other capital expenditure, see Guide to depreciating assets 2020. You can also work out your depreciation and capital allowance claims by using the Depreciation and capital allowances tool.

49 Small business entity simplified depreciation

Small businesses can claim an immediate deduction for most assets.

Under these rules, if you purchased assets from 7.30pm (AEST) on 12 May 2015 and first used or installed them ready for use:

From 7.30pm (AEST) on 12 May 2015 until 28 January 2019	From 29 January 2019 until before 7.30pm (AEDT) 2 April 2019	From 7.30pm (AEDT) on 2 April 2019 until 11 March 2020	From 12 March 2020 to 30 June 2020
You can immediately deduct the business portion of most depreciating assets costing less than $20,000 each (the instant asset write-off threshold)	You can immediately deduct the business portion of most depreciating assets costing less than $25,000 each (the instant asset write-off threshold).	You can immediately deduct the business portion of most depreciating assets costing less than $30,000 each (the instant asset write-off threshold).	You can immediately deduct the business portion of most depreciating assets costing less than $150,000 (The car limit applies to limit the instant asset write off deduction where a car is designed to mainly carry passengers.)

This temporarily replaces the previous instant asset write-off threshold of $1,000.

The balance of the general small business pool is also immediately deductible if the balance is less than the relevant threshold at the end of an income year that ends on or after 12 May 2015 and on or before 30 June 2020 (including existing general small business pool).

The 'lock out' laws have been suspended for the simplified depreciation rules (these prevent small businesses from re-entering the simplified depreciation regime for five years if they have opted out) until the end of 30 June 2020.

Only complete this item if the partnership is a small business entity using the simplified depreciation rules.

To complete this item, use the amounts calculated for small business entity depreciation deductions at K item 5.

• Show at A the total amount claimed as a deduction for low-cost assets
• Show at B the total amount claimed as a deduction for general small business pool assets.

Only put the depreciation deduction in the two small business entity depreciating asset labels, and not the pool balance.

50 National rental affordability scheme (NRAS) tax offset

Entities participating in the NRAS may claim their share of the refundable tax offset in their tax return.

The refundable tax offset is only available where the Housing Secretary from the Department of Social Services has issued a certificate under the NRAS. In order to claim the offset in 2019–20, the NRAS certificate must relate to the NRAS year 1 May 2019 to 30 April 2020.

The partners' share of the NRAS tax offset must be shown at F of this item and at I item 52 Statement of distribution.

The amount of the entity’s tax offset is the amount stated in the certificate issued by the Secretary of the Department of Social Services. However, if the Secretary issues the entity with an amended certificate under the National Rental Affordability Scheme Act 2008External Link, the amount of the entity’s tax offset is the amount stated in the amended certificate.

51 Income tests

Income tests are used to work out an individual’s eligibility for certain tax offsets and determining other obligations, such as:

• Higher Education Loan Program, Student Financial Supplement Scheme repayments, Student Start-up loan repayments and ABSTUDY Student Start-up loan repayments
• Super co-contributions
• Medicare levy surcharge.

Income test information is also used by other agencies, such as Services Australia, to work out eligibility for other government benefits and obligations.

These income tests require the individual (where applicable) to provide their net financial investment loss and net rental property loss in their income tax return.

The individual's net financial investment loss and net rental property loss includes any financial investment income or loss and any rental property income or loss received as part of an overall distribution from a partnership.

The information provided at items 51 and 52 Statement of distribution will assist each partner to complete their income test information in their individual income tax return.

Net financial investment income or loss

If the partnership received income or claimed deductions during 2019–20, then work out the net income or loss from financial investments and show it at G.

Financial investments for income test purposes include the following:

• shares
• an interest in a managed investment scheme, including a forestry managed investment scheme
• rights or options in respect of any of shares or interests in a managed investment scheme
• distributions from a partnership that included income or losses from an investment listed above
• any investment that is of a similar nature to those listed above.

Do not include any of the following when calculating the partnership's net financial investment income or loss:

• interest from everyday transactions accounts
• capital gains
• capital losses.

Managed investment schemes

The investment manager will be able to tell you whether your investment is a managed investment scheme, that is, a scheme registered under the Corporations Act 2001.

Managed investment schemes include:

• cash management trusts
• property trusts
• Australian equity (share) trusts
• international equity trusts
• agricultural schemes, which include horticultural, aquaculture and commercial horse-breeding schemes
• some film schemes
• some time-share schemes
• some mortgage schemes
• actively managed strata title schemes.

Investments that are not managed investments schemes include:

• regulated superannuation funds
• approved deposit funds
• debentures issued by a body corporate
• barter schemes
• franchises
• direct purchases of shares or other equities
• schemes operated by an Australian bank in the ordinary course of banking business, such as term deposits.

Rights and options

To work out the partnership's financial investment income or loss, you need to include income and deductions from rights and options the partnership holds over shares and interests in managed investment schemes. Rights and options include:

• warrants
• futures contracts.

For more information on financial investments and income tests, see Income tests.

Deductions

Allowable deductions the partnership can claim for an investment include (but are not limited to) expenses paid to:

• borrow money to purchase an investment
• manage investments
• obtain advice about changes to the mix of investments.

The expenses should be taken into account only to the extent that they are attributable to the partnership's financial investments.

Answering this question

Completing G Net financial investment income or loss item 51:

Step 1

Use example 12 and the worksheet to list the partnership income and deductions from financial investments, then calculate the net financial investment income or loss.

Step 2

Write the result from step 1 at G.

Step 3

Write each partner's share of the net financial investment income or loss at J item 52.

Worksheet: Working out the partnership's net financial investment income or loss

Financial investment income calculation

Row	Financial investment income	XYZ Partnership	Partnership
a	Managed investment scheme income included at R item 8	$400	$
b	Forestry managed investment scheme income included at Q item 10	$1,200	$
c	Dividends from Australian shares shown at K Unfranked amount item 12	$7,000	$
d	Dividends from Australian shares shown at L Franked amount item 12	$	$
e	Dividends from Australian shares shown at M Franking credit item 12	$	$
f	Gross dividend income from foreign companies and gross income from foreign managed investment schemes, shown at B item 23	$1,230	$
g	Any other income from a financial investment (other than the partnership's share of net financial investment income or loss from other partnerships shown on the statement of distribution from the other partnership)	$	$
h	Add up values in rows a to g.	$9,830	$

Financial investment deductions calculation

Row	Financial investment deductions	XYZ Partnership	Partnership
i	Deductions relating only to the managed investment scheme income you have included at T item 8	$2,500	$
j	Deductions relating to Australian investment income where the investment type is included in definition of financial investment shown at P item 16	$4,300	$
k	Forestry managed investment scheme deductions you have shown at D item 17	$2,600	$
l	Dividend deductions from foreign companies and deductions for foreign managed investment scheme income (other than debt type deductions you have shown at Q item 18) you used to calculate the combined net foreign dividend and net foreign managed investment scheme amount shown at V item 23	$	$
m	Any other deductions relating to a financial investment (including deductions you have shown at Q item 18)	$3,000	$
n	Add up values in rows i to m.	$12,400	$

Net financial investment income or loss calculation

Row	Net financial investment income or loss	XYZ Partnership	Partnership
o	Take row n value away from row h value. Show a loss as negative.	$−2,570	$
p	If applicable, write your partnership's share of net financial investment income or loss from other partnerships shown on the statement of distribution from the other partnership. If it is a loss, write as a negative number.	$300	$
q	Add up values in rows o and p. Show a loss as negative.	$−2,270	$

The amount at row q is the partnership's net financial investment income or loss. Write this amount at G item 51. If the amount is a loss, write L in the box on the right hand side of G.

Statement of distribution

Once you have shown the net financial investment income or loss at item 51, you also need to show each partner's share of the financial investment income or loss at J item 52. If the amount at J is a loss, print L in the box at the right of the figure.

Go to H item 51.

Net rental property income or loss

Show at H item 51 the amount of the partnership’s net income or loss from rental properties. When calculating the partnership's net rental property income or loss, you need to consider Australian rent, foreign rent, and net rental income or loss distributed from other partnerships.

Net rental property losses occur when the amount of allowable deductions you claim for the partnership's rental properties is greater than the gross rental income the partnership receives.

Capital gains or losses made in regard to a rental property are not included in the partnership’s net rental property income or loss.

If the partnership earned rental income or claimed rental deductions, you must complete H item 51 and K item 52 showing each partner's share of net rental property income or loss.

Answering this question

Completing H Net rental property income or loss at item 51.

Before completing this question, first complete item 9 Rent and item 23 Other assessable foreign source income.

Step 1

Use the worksheet below to list all rental income and deductions and then calculate the net rental property income or loss. Write a loss as a negative number.

Step 2

Write the result from step 1 at H item 51.

Step 3

Write each partner's share of net rental property income or loss at K item 52.

Worksheet: Net rental property income or loss

Row	Calculation element	Amount ($)
a	Net rental property income shown at item 9 Rent. Write a loss as a negative number.	$
b	Net foreign rental property income or loss included at V item 23 Other assessable foreign source income. Write a loss as a negative number.	$
c	If applicable, write your partnership's share of net rental property income or loss from other partnerships shown on the statement of distribution from the other partnership. Write a loss as a negative number.	$
d	Add up values in rows a to c.	$
e	Any other deductions relating to a rental property (including deductions at Q item 18)	$
f	Take row e away from row d. Show a loss as negative number.	$

Write the amount at row f at H item 51. If the amount is a loss, write L in the box on the right hand side of H item 51.

Statement of distribution

Once you have shown the net rental property income or loss at item 51, you also need to show each partner's share of the net rental property income or loss at K item 52 Statement of distribution.