We have noticed the following two types of trust income distributions being incorrectly reported at item 13.
Where a trust distribution includes a capital gain - record this amount at item 18 of the individual return.
Where your client is an individual beneficiary and a trust distributes non-primary production foreign income to them - declare this income at the foreign income labels of the tax return at item 20.
A partnership does not own assets for capital gains tax purposes. Each partner owns a proportion of each asset and must include their share of the capital gain or capital loss in their individual return at item 18.
End of attentionFor more information, refer to:
- question 18 Capital gains
- question 20 Foreign source income and foreign assets or property.