Introduction:
These instructions will help you complete the Partnership tax return for 2019. They are not a guide to income tax law. You may need to refer to other publications. When we say ‘you’ or ‘your business in these instructions, we mean either you as the partnership that conducts a business or you as the registered tax agent or partner responsible for completing the tax return.
These instructions contain abbreviations for names or technical terms. Each term is spelled out in full the first time it is used and there is a list of abbreviations. You have until 31 October 2019 to lodge the Partnership tax return, unless we have allowed you to lodge it later, or you have a later due date because a registered tax agent prepares the return. If you cannot lodge the tax return by 31 October 2019 contact us as soon as possible, before 31 October 2019, to find out whether you can lodge at a later date. The postal address for lodgement of the Partnership tax return is below. See Schedules for a list of the schedules that you can lodge with your Partnership tax return for 2019.
16 Deductions relating to Australian investment income:
Show at P the expenses incurred in earning interest and dividends. If the partnership was paid a dividend by a Listed Investment Company (LIC) and the dividend included a LIC capital gain amount which is shown on the LIC’s dividend statement, the partnership can claim a deduction of half of the LIC capital gain amount. Expenses listed here that are costs associated with borrowing and servicing debt may not be allowable deductions under the thin capitalization rules. For more information, see Appendix 3. The disallowed amount reduces the amount that would otherwise go at P. Deductions for the decline in value of depreciating assets used to earn interest and dividends are generally shown at P. However, if the partnership has allocated some of these assets to a low-value pool, you may need to show deductions at Q item 18; for more information, see Appendix 6. If you have incurred interest in respect of a collapsed MIS, then for information on your eligibility to claim a deduction for interest expenses see Collapse and restructure of agribusiness managed investment schemes – participant information.
If the TOFA rules apply to the partnership, include all deductions relating to Australian investment income from financial arrangements subject to the TOFA rules at P.
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