IR7 Question 26 Attribution of income loss

All income, losses and tax credits must be attributed to the partners or owners in proportion to their share in the partnership or effective look through interest in the LTC.

At Question 26 tick which entity the income/loss details are attached for.

For partnerships, complete the IR7P to provide attribution details for all partners.
For LTCs, complete the IR7L to provide attribution details for all owners.

Show the details for each partner or owner on the relevant form. If there are more than two partners or owners use additional IR7P or IR7L forms. You can print them from the Inland Revenue website www.ird.govt.nz as you need them.

Attach all IR7P or IR7L forms to the top of page 3 of your IR7 return.

Completing your IR7L or IR7P

Question 26A IRD number

Print the partner’s or owner’s IRD number. If you don’t know their IRD number you will need to contact them to request it.

Question 26B Attribution of income/loss

Show the attribution of income or loss the partner or owner is entitled to as a percentage of the total. Write percentages as four-digit numbers, for example, show 15% as 15.00.

For LTCs with only one owner the percentage will be a five-digit number, for example, show 100% as 100.00.

For LTCs, effective look-through interest determines each owner’s attribution of income or loss from the LTC.

Each owner’s effective look-through interest is generally determined by the percentage of shares the owner has in the LTC.

Please read the Look-through companies (IR879) guide if you need further information.

Questions 26C to 26J Attributed income/loss

Print the partner’s or owner’s attribution of:

interest (from Question 11) in Box 26C
dividends (from Question 12) in Box 26D
Maori authority distributions (from Question 13) in Box 26E
overseas income (from Question 16) in Box 26F
residential income (from Question 18) in Box 26G
other rental income (from Question 19) in Box 26H
other passive income (from Questions 20 and 21) minus any relevant expenses at Question 23, including income received by a non-active partner or owner in the business) in Box 26I
all other income and expenses (not already included in Boxes 26C to 26I) in Box 26J.

Question 26K Total income

Print the total of all Boxes 26C, 26D, 26E, 26F, 26G, 26H, 26I and 26J in Box 26K. If a loss, put a minus sign in the last box.

The totals of all partners’ or owners’ Box 26Ks must add up to the IR7 income or loss shown in Box 24. If they don’t, it will take Inland Revenue longer to process your return.

Question 26L Deduction for extinguished losses

See instructions at Deduction for losses extinguished on transition from a QC or LAQCof this guide.

Question 26M Residential rental deductions

Print the partner's or owner's attribution in Box 26M.

Questions 26N, 26O and 26P Attributed tax credits

Print the partner’s or owner’s attribution of:

overseas tax paid (from Question 16) in Box 26N
imputation credits (from Question 12) in Box 26O
other tax credits (from Questions 10 to 15, excluding any imputation credits) in Box 26P.

Questions 26Q to 26T Non-allowable deductions (IR7L only) — where loss limitation rule doesn’t apply for the owner(s)

This information applies for an LTC who is not subject to the loss limitation rule. See Question 15 Income from another LTC.

Non-allowable deductions this year

There won’t be non-allowable deductions this year as the loss limitation rule no longer applies. Do not include an amount in Box 26Q.

Non-allowable deductions brought forward

This is the amount carried forward from last year that was restricted by the loss limitation rule. Print the amount in Box 26R.

The LTC should have records of the non-allowable deductions brought forward.

Prior years’ non-allowable deductions claimed this year

This will be the same as the amount in Box 26R and is the amount claimable this year. Copy the amount in Box 26R to Box 26S.

Non-allowable deductions carried forward

There should be no non-allowable deductions to carry forward. Leave Box 26S blank.