| Disclaimer This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law. You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of your written advice
Authorisation Number: 1012934530402
Date of advice: 11 January 2016
Ruling
Subject: Partnership loss
Question and answer
Are you entitled to claim your share of losses in relation to a partnership?
Yes.
This ruling applies for the following period:
Year ending 30 June 2015
The scheme commenced on:
1 July 2014
Relevant facts and circumstances
You are a resident of Australia for taxation purposes.
You had a XX% share in a partnership overseas.
You have incurred losses in relation to this partnership.
Relevant legislative provisions
Income Tax assessment Act 1997 section 8-1
Reasons for decision
The assessable income of a partner in a partnership includes the distribution of income or loss from the partnership in terms of section 92 of the ITAA 1936. The net income or loss of a partnership is calculated by deducting the allowable deductions attributable to the partnership from the assessable income attributable to the partnership.
Subsection 92(2) of the ITAA 1936 provides that that where a partnership loss is incurred by a partnership in a year of income each partner in a partnership shall be allowed as a deduction their individual interest in the partnership loss.
Deductions from income are allowable in terms of Section 8-1 of the ITAA 1997 for any loss or outgoing to the extent to that it is incurred in gaining or producing assessable income, or is necessarily incurred in carrying on a business for the purpose of gaining or producing assessable income. However, you cannot deduct a loss or outgoing to the extent that it is a loss or outgoing, of a capital, private or domestic nature.
In your case you had a XX% share in a partnership overseas.
The partnership has incurred losses.
You are able to claim your share of the losses in your Australian tax return in relation to the partnership.