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  • myTax 2019 Partnerships

    Complete this section if you received, or were entitled to:

    • income or loss from a partnership
    • a credit for amounts of tax paid on, or amounts withheld from, partnership income
    • a share of the 'national rental affordability scheme' tax offset.

    On this page:

    Essentials

    If you have received or are entitled to an amount of income from a partnership which includes a dividend with Australian franking credits from a New Zealand franking company, you may be eligible to claim Australian franking credits. However, you cannot claim New Zealand imputation credits. For more information, see Other foreign income. 

    If you have deferred non-commercial business losses from a prior year, you may be able to claim them this year if you operated the same or a similar business activity. For more information, see Deductions.

    Do not show all categories of income from a partnership at this section. For more information, see Do not show at this section.

    Statement of distribution or advice from the partnership

    A statement of distribution or advice from the partnership may show the following details in relation to your share of partnership distribution for tax purposes:

    • the amount of any primary production income or loss and the amount of any non-primary production income or loss
    • the amount of attributed foreign income and other foreign source income
    • the amount of any income on which family trust distribution tax or trustee beneficiary non-disclosure tax has been paid
    • your entitlement to any of the following credits or tax offsets  
      • credit for amounts of tax withheld because the partnership failed to quote its Australian business number
      • credit for amounts of tax withheld due to the imposition of non-resident withholding tax or managed investment trust withholding tax from partnership income you received when you were a resident
      • share of the 'national rental affordability scheme' tax offset
      • allowable franking credits from franked dividends
      • credit for tax file number amounts withheld.
       

    Depreciation and capital expenses

    You generally can't deduct spending on capital assets immediately; instead you claim the cost over time, reflecting the asset's depreciation (or decline in value). For more information, see Guide to depreciating assets.

    You can use the Depreciation and capital allowances tool to work out any decline in value deduction as well as any deductible balancing adjustment when you stop holding a depreciating asset.

    The tool can be accessed in the Deductions section on the Prepare return screen.

    Do not show at this section

    Do not show the following income at this section or you may be taxed incorrectly:

    • Attributed foreign income from a partnership (unless instructed otherwise). Show this at Foreign entities in the Foreign income, assets and entities section.
    • Any other foreign source income from a partnership (unless instructed otherwise). Show this at Other foreign income in the Foreign income, assets and entities section.
    • A capital gain or a capital loss in respect of your interest in a partnership or a partnership asset. Show this in the Capital gains or losses section.
    • Income from a corporate limited partnership. Show this in the Dividends section.
    • Interest you received, or were credited with, from a joint account, where you quoted your individual tax file number to the financial institution. Show this in the Interest section.
    • Rent derived jointly (or in common) with another person from a jointly held property where you were not a member of a partnership carrying on a business of renting out properties, Show this in the Rent section.
    • Any distribution in relation to a foreign resident capital gains withholding credit. Show this in the Capital gains or losses section.
    • Your entitlement to an early stage venture capital limited partnership (ESVCLP) tax offset or early stage investor tax offset as a partner in a partnership. Show these in the Offsets section.

    If you can't see these sections, use the Personalise return screen to select those sections that apply to you. For further help with personalising your return, see How to personalise your return.

    You should not receive a distribution of a net capital gain or a net capital loss from a partnership. For information about how a partner shows their share of a capital gain or capital loss, see Guide to capital gains tax.

    Completing this section

    You will need:

    • A statement of distribution or advice from the partnership showing details in relation to your share of partnership distribution for tax purposes.
      If you think that any details are wrong or are missing from the statement of distribution or advice you received from the partnership, contact the managing partner.
    • Details of any deductions you can claim against your partnership income that has not already been claimed by the partnership.

    We pre-fill your tax return with partnership information provided to us. Check for partnership distributions you received that are not pre-filled and ensure you add them.

    1. For each partnership distribution that has been pre-filled in your tax return, add any information not pre-filled.
    2. For each partnership distribution that has not been pre-filled in your tax return, select Add and enter information.
    3. Show your share of partnership Primary production and Non-primary production income in the corresponding fields.
    4. Show your share of partnership Primary production deductions and Non-primary production deductions in the corresponding fields.
      If you show an amount at Other deductions, select one of the following Type codes:  
      • D if the entire amount at Other deductions is a deferred non-commercial business loss from a prior year
      • N if the amount at Other deductions does not include any deferred non-commercial business loss from a prior year
      • P if only part of the amount at Other deductions is a deferred non-commercial business loss from a prior year.
        Note: If you used the Depreciation and capital allowances tool, fields containing information from the tool cannot be directly adjusted in myTax. To make any adjustments to this information, or to add new assets to the tool, select the 'Use the depreciation and capital allowances tool' link.
        MyTax will automatically calculate the Net primary production and Net non-primary production amounts.
        If the partnership income includes professional income you must also include this in the Other income section. For more information see, Professional income.
       
    5. Show your partnership share of credits from income and tax offsets in the corresponding fields.
    6. Select Save.

    Notes:

    • MyTax may remind you of partnership distribution amounts you need to include at Other foreign income in the Foreign income, assets and entities section.
    • If you conducted a business activity as a partner in a partnership that resulted in a loss, or resulted in a loss after deducting your expenses, you must complete the Loss details section.
    • You may be entitled to the small business income tax offset if either of the following apply:  
      • your partnership distribution included a share of net small business income
      • you had a farm management repayment or other amount you received as a partner in a small business entity.
       

    Tax tip

    Keep a record of each partnership distribution with your other records.

    You need the following information:

    • name and tax file number of the partnership
    • amount and source of each partnership distribution
    • amount of any taxable professional income
    • amount and type of deductions claimed, and
    • amount and type of any share of credits.
      Last modified: 26 Jun 2019QC 58939