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  • Worksheet 2: Working out your sole and joint deductions

    Attention

    Warning:

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

    End of attention

    Worksheet 2 will help you to complete F, G and H item A3 by separating out deductions from joint income and identifying business deductions.

    Step 1 Complete column (b) in worksheet 2 by transferring the appropriate amount from your 2018 tax return for the items listed in column (a).

    Step 2 For each amount in column (b), write the amounts in columns (c), (d), (e) or (f).

    Apportion each amount in column (b) into columns (c), (d), (e) and (f) depending on the source of the income to which the deduction applies. If the deduction relates to income that came from:

    • a trust, show the amount in column (c)
    • you individually, show the amount in column (c) or (d) as appropriate
    • a partnership, show the amount in worksheet 4
    • a joint income group, show the amount in column (e) or (f) as appropriate
    • if you have more than one joint income group duplicate columns (e) and (f) on a separate sheet of paper.

    From (b) work out how much of that deduction relates to solely earned and jointly earned income across these columns.

    Worksheet 2: Working out your sole and joint income

    Deductions shown at the following:
    (a)

    Deductions shown on your tax return
    (b)

    Deductions from solely earned

    Income group 1
    Deductions from jointly earned

    Non-business income
    (c)

    Business income
    (d)

    Non-business income
    (e)

    Business income
    (f)

    1. Low value pool deduction (from K item D6)

     

     

     

     

    Does not apply

    2. Interest deductions, such as bank fees (from I item D7)

     

     

     

     

    Does not apply

    3. Dividend deductions (from H item D8)

     

     

    Does not apply

     

    Does not apply

    4. Cost of managing tax affairs (from N, L and M item D10)

     

     

     

     

     

    5. Other deductions relating to distribution (amount from X and Y item 13 that relates to share of net income from trusts only)

     

     

    Does not apply

     

    Does not apply

    6. Farm management deductible deposits (from D item 17)

     

     

     

     

    Does not apply

    7. Foreign source income deductions (you included when calculating the amount shown at T, L, D, R, and M item 20)

     

     

     

     

    Does not apply

    8. Rent
    (from Q, F and U item 21)

     

     

    Does not apply

     

    Does not apply

    9. Forestry managed investment scheme deductions (from F item D14)

     

     

     

     

     

    10. Other deductions (from J item D15)

     

     

     

     

     

    11. Personal services income deductions (from K and L item P1)

     

     

     

    Does not apply

    Does not apply

    Total deductions: add up each column except (c)

     

     

    (g)

    (h)

    (i)

    Total gross income for each joint income group (transfer amounts from Worksheet 1)

     

     

     

    (j)

    (k)

    Joint income; for each joint income group, take (h) away from (j) and (i) from (k).

     

     

    Transfer amount at (g) to (d) on worksheet 6.

    (l)

    (m)

    (n) is the total net income for each income group: add (l) and (m).

     

     

     

    (n)

    (n)

    Step 3 For each separate joint income group, you will have an (n) on worksheet 2 that is either positive or negative. For each income group you need to separately translate the worksheet 2 results to worksheet 6 using the instructions in table 1 or table 2 as appropriate.

    If the amount at (n) for a joint income group is positive use table 1, if the amount at (n) is negative use table 2.

    Table 1: Amount at (n) on worksheet 2 is positive

    Result

    Action 1

    Action 2

    Amount at (m) is negative or 0.

    Transfer amount at (n) to (e) on worksheet 6 and write 0 at (g) on worksheet 6 next to the correct joint income group.

    Write 0 at (f) on worksheet 6, next to the correct joint income group.

    Amounts at (l) and (m) are positive.

    Transfer amount at (n) to (e) on worksheet 6 and write 0 at (g) on worksheet 6 next to the correct joint income group.

    Transfer amount at (m) to (f) on worksheet 6, next to the correct joint income group.

    Amount at (l) is negative and (m) is positive.

    Transfer amount at (n) to both (e) and (f) on worksheet 6 next to the correct joint income group.

    Write 0 at (g) on worksheet 6 next to the correct joint income group.

    Table 2: Amount at (n) on worksheet 2 is negative

    Result

    Action 1

    Action 2

    Amount at (m) is negative and (l) is 0.

    Write 0 at the joint income group for both (e) and (f) on worksheet 6, next to the correct joint income group.

    Transfer as a positive figure the amount at (n) to (g) on worksheet 6, next to the correct joint income group.

    Amount at (l) is positive and (m) is negative.

    Write 0 at both (e) and (f) on worksheet 6, next to the correct joint income group.

    Transfer as a positive figure the amount at (n) to (g) on worksheet 6, next to the correct joint income group.

    Amount at (l) is negative and (m) is positive or 0.

    Write 0 at both (e) and (f) on worksheet 6, next to the correct joint income group.

    Write 0 at (g) on worksheet 6, next to the correct joint income group.

    Amount at (l) is negative and (m) is negative.

    Write 0 at both (e) and (f) on worksheet 6, next to the correct joint income group.

    Transfer as a positive figure the amount at (m) to (g) on worksheet 6, next to the correct joint income group.

      Last modified: 31 May 2018QC 55212