Distributions of income from other partnerships and trusts

Use the Distributions from partnerships worksheet (dip) and/or the Distributions received from trusts worksheet (dit) to enter all details for the share of income, credits and deductions distributed from another Partnership or another Trust.

The Distributions from trusts worksheet also provides for the entry of the share of Capital Gains and the share of Foreign income and foreign tax paid on distributions received from a Managed Investment Trust.

These worksheets roll over the details of the partnerships or trusts from which distributions were received in a previous year.

If you do not use the Tax worksheets, then values may be keyed directly at the labels in the return. If a distributing Partnership or Trust is contained in your ledger the receiving Partnership or Trust worksheets will be automatically created when you click the [F8] distribution function.

If the partnership statement of distribution or advice includes any of the following Do NOT include them at this item. Include them as indicated below:

dividends or franking credits indirectly received that were attributable to distributions from a New Zealand franking company at this label. Show these amounts at item 23 Other assessable foreign source income
payments and loans received from trustees or amounts that are debts forgiven by trustees that are treated as dividends under division 7A Part III of the ITA 1936. Show these amounts at label K Unfranked amounts at item 12 if they are unfranked. However, Division 7A Part III was amended to enable certain amounts treated as dividends to be franked. If the amounts are franked, include them at label L item 12.
foreign income or a foreign capital gain. Show these types of income at Attributed foreign income at item 22 and Other assessable foreign source income at item 23
Net capital gain (including foreign capital gains) at item 21. (Dividends received from listed investment companies are not distributions of net capital gains). Refer to the Capital gains tax home page on the ATO website.

A Quick access link to the Foreign income worksheet is provided where the Partnership distribution statement includes an amount of Foreign income and/or foreign tax paid.

Primary Production Income

Label A - Distribution from Partnerships

This amount is this trust's share of the total primary production income/loss distributed from other partnerships. Refer to Distributions from partnerships worksheet (dip).

Primary Producers and Averaging System

In order that the ATO will continue to keep the taxpayer in the averaging system, if there has not been a distribution of primary production income during the income year, you must enter a zero at label A for the estimate of tax payable to be correctly calculated both by Tax and the ATO.

Label Z - Share of net income from trusts

This amount is the trust's share of primary production income which has been included in the net income for tax purposes of other trusts. The Statement of distribution or advice from the other trust(s) should separately show this amount. Refer to Distributions received from trusts worksheet (dit).

This amount should include the trust's share of primary production income which has been included in the net income of other trusts where the trust became presently entitled to primary production income of other trusts in the income year but has not yet received it.

If the trust's share of primary production income included in the net income of other trusts is zero because the other trust has made a loss from its primary production activities, print L in the box at the right of the amount. Show a loss at Z only if it is a component of an overall distribution of net income from the SAME trust.

If this amount is not a loss, select from the list the code that best describes the type of trust from which the distribution is made. If this amount is from more than one type of trust, select the code that represents the trust with the greatest amount of distribution.

Primary Producers and Averaging System

In order that the ATO will continue to keep the taxpayer in the averaging system, if there has not been a distribution of primary production income during the income year, you must enter a zero at label Z for the estimate of tax payable to be correctly calculated both by Tax and the ATO.

Trust income action code: Select the type of trust from the list available. If the distribution is a loss, leave the code blank.

Label S - Deductions relating to amounts shown at A and Z

Show at label S the trust's deductions for its own expenses relating to primary production distributions from other partnerships or trusts. Also show at label S the trust's deductions for its own expenses in deriving its share of primary production income which has been included in the net income for tax purposes of other trusts. Note that expenses incurred on behalf of those other trusts are not able to be deducted by the trust.

If any expenses have been prepaid, the amount that can be claimed at label S may be affected by the prepayment provisions. Refer to the publication Deductions for prepaid expenses available on the ATO website.

Expenses listed here that are costs associated with borrowing and servicing debt may not be allowable deductions under the thin capitalisation rules. Refer to Appendix 3 in the ATO Trust return instructions. The disallowed amount reduces the amount that would otherwise go at label S.

Net primary production distribution

This amount is automatically calculated by Tax.