If you show partnership income at items 13, 19 or 20, then you must complete worksheet 3 and you may have to complete worksheet 4. Otherwise do not complete worksheets 3 and 4 and go to working out your adjustments.
Worksheet 3 will help you to complete G and H item A3 by splitting your partnership income into business income and investment income.
Step 1 Complete column (b) in worksheet 3 by transferring the appropriate amount from your 2019 tax return for the items listed in column (a).
Step 2 Write in columns (c), (d) and (e) the amounts derived from a partnership that you have shown at items 13, 19 and 20 in column (b). The sum of (c), (d) and (e) must equal (b).
(a) |
(b) |
(c) |
(d) |
(e) |
|---|---|---|---|---|
1. Primary production amount (from N item 13) |
$ |
$ |
$ |
$ |
2. Non-primary production amount (from O item 13) |
$ |
$ |
$ |
$ |
3. Partnership related foreign income (from items 19 and 20) |
$ |
$ |
$ |
$ |
Total partnership distribution (Add up each column.) |
$ |
(f) $ |
(f) $ |
(f) $ |
Step 3 You need to work out for each partnership (including distributions your partnership received from another partnership) whether the income earned by the partnership was:
- all from carrying on a business, see table 3
- all investment, see table 4
- a mixture of both, see table 5.
You have finished worksheet 3 when you have taken these actions for each partnership.
Result |
Action |
|---|---|
Amount at (f) for the partnership is positive. |
Transfer amount at (f) to (h) and (i) on worksheet 6, next to the correct partnership. |
Amount at (f) for the partnership is negative. |
Write 0 at (h) and (i) on worksheet 6 for that partnership. Write as a positive figure the amount at (f) in worksheet 4, next to the correct partnership. |
Result |
Action |
|---|---|
Amount at (f) for the partnership is positive. |
Transfer amount at (f) to (h) on worksheet 6 for that partnership. Write 0 at (i) and (j) on worksheet 6, next to the correct partnership. |
Amount at (f) for the partnership is negative. |
Write 0 at (h), (i) and (j) on worksheet 6, next to the correct partnership. |
Result |
Action |
|---|---|
Amount at (f) for the partnership is positive. |
Transfer amount at (f) to (h) in worksheet 6. Transfer that part of the positive amount that is attributable to the partnership carrying on a business to (i) on worksheet 6. The amount transferred to (i) should not exceed the amount at (f). Write it next to the correct partnership. |
Amount at (f) for the partnership is negative. |
Write 0 at (h) and (i) in worksheet 6 for that partnership. Write as a positive figure that part of the partnership loss that is attributable to carrying on a business at (f) on worksheet 4. The amount transferred to (f) should not exceed the amount at (f) on worksheet 3. Write it next to the correct partnership. |