Distributions received from trusts worksheet (dit)

This worksheet records:

the details of any share of income or loss received from another trust
deductions your trust may have incurred in earning that distribution income.

Don't include deductions related to running your own trust.

You can have up to 99 dit worksheets for any return.

What do I need?

You'll need the statements of distribution from:

- each of the distributing family or discretionary trusts
- each of the managed investment trusts (MITs) or unit trusts (UTs).

What will MYOB Tax do?

We'll create the dit worksheet in the relevant return if you:

act for the distributing trust
have used F8 or clicked Distribute at item 55: Statement of distribution to distribute the net trust income:

You'll find the worksheet by clicking:

Individual: item 13: labels L, U or C—Primary Production, Non-primary production of Franked dividends
Partnership or Trust: item 8: labels A, B or R—Primary production, Non-primary production or Franked distributions from trusts
Company: income item 6: label E—Gross distributions from trusts

If you don't act for the distributing trust, create a dit to record distributions received from other trusts.
If the distribution is from a Managed investment trust (MIT), enter data from the MIT.
Use the Pre-fill Manager for your individual clients receiving a share of income from a MIT. See Pre-fill manager.
You can create up to 99 dit worksheets for any return. When more than one exists, each of their names will show in the Select Schedule index of the worksheet.
There are variations to the layout for the dit because different rules and item labels apply to some form types.
The dit attached to the individual return is the most complex and it's shown in detail below.

Creating a distributions received from trusts worksheet for an individual beneficiary

Open the beneficiary's return and click one of the PP or non-PP income labels:

Individual: item 13: labels L, U or C—Primary Production, Non-primary production of Franked dividends
Partnership or Trust: item 8: labels A, B or R—Primary production, Non-primary production or Franked distributions from trusts
Company: income item 6: label E—Gross distributions from trusts

This example shows 2 dit worksheets for individuals:

Click Select to edit an existing dit.

Click New to create a dit and fill in the amounts on the distribution statement received by your client.

Amounts entered will filter through to the relevant item labels in the main return.

If you're a primary producer in the averaging system and you haven't received a distribution of PP income this year, enter a zero at item 13:

label N—Primary production distribution from partnerships, or
label L—Primary production distribution from trusts

This will avoid a query from the ATO. It shows that although you haven't received a distribution of PP income this year, you aren't leaving the PP averaging system.

Share of Capital gains

We've provided three fields for capital gains (CGT) distributions.

When you close the dit, we'll create a corresponding code Z entry as a transaction in the capital gains worksheet (g).

We'll also gross up the discount (net) amount where applicable and add it to total capital gains in the return.

Share of Capital gains and losses from sale of units in a Unit trust

We've provided 4 fields for capital losses or gains from a unit trust. If both gains and losses have been made, you must enter these on the same row as there is no Insert row function here.

When you exit the dit worksheet, we'll create an entry with the category D in the capital gains worksheet (g).

Capital gains are offset against capital losses on exiting the capital gains worksheet (g).

Share of Foreign income and foreign tax paid

We've provided 4 sets of fields for foreign income transactions.

When you exit the dit, we'll create a corresponding entry in the foreign income worksheet (for).

The amounts will filter through to the relevant labels in each of the applicable returns.

We'll calculate the allowable foreign tax credit when you prepare the F4 estimate.

Distribute the foreign income tax credit when there:

are presently entitled beneficiaries or
the trustee is taxed as an individual.

Deductions and integration from other worksheets for individuals

Enter the deductions related to earning the distribution income and not the expenses incurred by the distributing trust.

Press Ctrl+Insert to create additional sets of deductions fields.

Press Ctrl+Delete to delete unused rows.

Data can integrate to the dit (for an individual return only), from:

the depreciation worksheet (d)
the motor vehicle worksheet (mve)

You can't edit these fields. We'll display amounts you've integrated from a depreciating asset or a share of motor vehicle expenses.

Press Enter at Amounts from the depreciation worksheet or Amounts from the motor vehicle worksheet to open the relevant worksheet from the dit.

Other information for individual Beneficiaries

Trusts that are a small business entity

We'll use the Share of net small business income to calculate each individual beneficiary's small business income tax offset (SBITO).

Mandatory fields for PLS lodgment

We'll use the coloured field amounts to pre-fill each beneficiary's IT5: label X—Net financial investment loss and IT6: label Y—Net rental loss fields.

See:

IT5 Financial investment income and deductions (fil)

IT6 Net Rental income and deductions (rpl)

Company return example

Trust return example

Partnership return example

For partnership and trust returns only:

We've provided a Quick access link in the dit to the Foreign income worksheet (for).

We'll use the information in the for worksheet to calculate each beneficiary's share of the foreign income tax offset (FITO).