Item 23 - Other assessable foreign source income

See item 23: Other assessable foreign source income on the ATO website.

Other assessable foreign income amounts both gross (label B) and net (label V) together with the foreign income tax offset, integrate to these labels from the Foreign income worksheet (for). See Foreign income worksheet (for).

Changes to income tests require partners to report their share of the partnership rental property income or loss. If you've included foreign rental income at item 23, we'll pre-fill that amount to the dialog behind item 50 label H and carry that amount through to the distribution statement at label K item 51. This lets each partner receive the correct share of net rental property income or loss.

Complete item 50 label G if you included gross income from foreign dividends at label B or deductions on foreign source income at label V related to foreign company dividends.

Label B—Gross foreign source income

Show at label B the gross amount of assessable income from foreign sources (that is, the amount before any foreign or Australian tax is withheld or paid), including amounts distributed from other partnerships and trusts, and from New Zealand dividends and supplementary dividends. Include any foreign tax paid on that income.

CCH References

4-490 Trans-Tasman triangular imputation rules

21-110 Controlled foreign companies: Introduction

21-300 Transferor trusts measures

21-360 Foreign investment funds - introduction

21-670 Foreign income tax offsets: introduction

21-680 Entitlement to foreign income tax offset

21-710 Amount of foreign income tax offset

21-760 Treatment of excess foreign tax

Label V—Net foreign source income (other than shown at item 22)

Show at V the net income derived from foreign sources.

Click label V to open the foreign income worksheet (for). See Foreign income worksheet (for).

CCH References

4-490 Trans-Tasman triangular imputation rules

21-110 Controlled foreign companies: Introduction

21-300 Transferor trusts measures

21-360 Foreign investment funds - Introduction

21-670 Foreign income tax offsets: Introduction

21-680 Entitlement to foreign income tax offset

21-710 Amount of foreign income tax offset

21-760 Treatment of excess foreign tax

Label Z—Foreign income tax offsets

Show at label Z the amount of any Foreign income tax offset claimed against foreign source income.

Partnerships don't include offsets for tax paid for foreign-sourced capital gains.

If foreign-income tax has actually been paid by the partnership, the partners may be able to claim a foreign-income tax offset in their individual income tax returns. They'll need to meet the necessary conditions.

Use the Foreign Income worksheet (for) to record transactions and have the available foreign income tax offset limit and the allowable foreign income tax offset calculated. Click label Z to open the Foreign income worksheet (for). See Foreign income worksheet (for).

Also see Guide to foreign income tax offset rules (NAT 72923) on the ATO website.

CCH References

4-490 Trans-Tasman triangular imputation rules

21-670 Foreign income tax offsets: Introduction

21-680 Entitlement to foreign income tax offset

21-710 Amount of foreign income tax offset

21-760 Treatment of excess foreign tax

Label D—Australian franking credits from a New Zealand company

If the partnership received assessable dividends directly or indirectly from a New Zealand franking company, the dividends (including any supplementary dividends) must be declared as assessable foreign income even if dividend withholding tax was deducted in New Zealand. The individual partners may be able to claim a foreign income tax offset for any New Zealand dividend withholding tax paid on the dividend. To work out whether the dividend is assessable income, see Guide to foreign income tax offset rules (NAT 72923) on the ATO website.

Show at label D the amount of Australian franking credits that are included in the net income of the partnership because of franked dividends received from a New Zealand franking company directly or indirectly through another partnership or trust.

The amount shown at label D is not necessarily the total amount that can be claimed by each partner.

CCH References

4-490 Trans-Tasman triangular imputation rules

21-670 Foreign income tax offsets

21-680 Entitlement to foreign income tax offset