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dgc004(Dynamo)Dynamo
18 Nov 2021

Good afternoon, I have a partnership - with an Accounting Profit of $23K (including a wage for a partner as a expense of $10K) I have done my tax reconciliation for the partnership - before the wage is even introduced - there is a tax loss (mainly because we have backed out Cash flow boost) Are we allowed to have the wage in the tax rec? Are we allowed to have a partnership wage in the tax return at all? What happens to the wage we want to declare in the partnership? Thank you!

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924 views
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BlakeATO(Community Support)Community Support
19 Nov 2021

Hi @dgc004


A partnership does not pay its partners wages.


The partners are paid through the distributions of the partnership income, which is then reported on the individual returns. The individuals then pay income tax based on the result of their full income tax return.

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Most helpful reply

BlakeATO(Community Support)Community Support
19 Nov 2021

Hi @dgc004


A partnership does not pay its partners wages.


The partners are paid through the distributions of the partnership income, which is then reported on the individual returns. The individuals then pay income tax based on the result of their full income tax return.

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