IR3 Question 18 Partnership income

Question 18

Show your share of income from the partnership’s trade or business from 1 April 2018 to 31 March 2019 in Box 18B, unless it includes:

• interest and any RWT—show this at Question 13 and tick 13C

• dividends and any credits—show this at Question 14 and tick 14C

• overseas income and overseas tax paid—show this at Question 17

• rental income—show this at Question 22

• other income and, if your share of this income:

• is received in recognition of your capital investment in the partnership and you didn’t take any active part in the day-to-day operation or management of the business (for example, you were a sleeping partner), or

• is generated from other investment activity (for example, sale of shares), show this at Question 24.

Partnership income earned as a result of “active” involvement is liable for ACC levies, which will be invoiced by ACC.

Losses from limited partnerships

If you’re claiming a loss from a limited partnership and you need help working out the amount you can claim, go to www.ird.govt.nz

 Expenses

You may be able to claim expenses against your share of the partnership income that wasn’t claimed in the partnership’s IR7 return, for example, interest on capital borrowed to purchase a share in the partnership.

Claim these expenses at Question 26.