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Dividend Deductions (ddd)

The ATO requires that expenses incurred in earning Interest and Dividends income be declared separately at items D7 and D8. However, where the sum of the Interest deductions at D7 and Dividend deductions at D8 is $5,000 or more, then an Interest and Dividend Schedule BJ must be completed and lodged with the return.

If you are required to complete and lodge the Interest and Dividend Schedule (BJ), you will need to turn off any integration that you have selected from the Motor Vehicle expenses worksheet (mve) or Depreciation expenses from the depreciation worksheet (d) as well as any entries as the ATO will only permit the amount that is in the BJ to be included at either or both of D7 and D8.

Do not show losses you have made on financial arrangements that are subject to tax under the new Taxation of Financial Arrangements (TOFA) rules at this item. These are shown at item D15 on your tax return.

If you have elected to have the TOFA rules apply to your affairs, before you complete your return and this question you must refer to Completing the tax return for individuals where the TOFA rules apply available on the ATO website,

You must also complete this item if you had a listed investment company (LIC) capital gain amount in your dividends.

Your expenses may include:

  • management fees, and fees for investment advice relating to changes in the mix of your investments

  • interest charged on money borrowed to purchase shares or similar investments

  • costs relating to managing your investments, such as travel and buying specialist investment journals or subscriptions.

Show any expenses incurred in earning trust and partnership distributions at X and Y item 13 on your tax return (supplementary section).

Do not show expenses incurred in earning foreign source dividends at this item. They are taken into account at item 20 or D15.

For Dividend Deductions, provide a description and amount for each transaction or add one pre-calculated entry. To add extra entries, click [Ctrl+Insert]. The amounts entered are totalled and returned at item D8 of the individual return only.

Integration Points

Integration is provided for:

  • Deductions from the motor vehicles schedule (mve)

  • Deductions from Depreciation worksheet

  • Deductions from Schedule BJ (ATO Interest and dividend deduction schedule). Dividend deductions from the BJ are integrated to D8.

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