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How to lodge a tax return for a "Partnership" when running a share-trading as a business?

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Hi,

We (partner and I) have been share-trading (actively) under a joint account for the past few years. The joint share-trading account at the brokerage is linked to our individual TFNs.

We qualify under the 'share-trading as a business' criteria. We decided to formalise and recently created a "Partnership' with ABN, TFN and a Business name. However, my broker just advised me that they do not offer brokerage service for "Partnership" for Australian clients. Therefore, I unable to create a brokerage account linking it to our Partnership ABN/TFN.

My question is,

1. How do we lodge tax return under the formalised "Partnership" ABN/TFN, if we continue trading under the joint account (linked to personal TFNs)?

2. What are my other options? 

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Hi @don't_know,

 

Thanks for your patience whilst we checked information with a specialist area regarding your query!

 

For income tax purposes, you should lodge a partnership tax return by following the Partnership-tax-return-instructions-2019.

 

Any gain or loss from the partnership will be declared in your individual tax returns at question-13 of the supplementary tax return.

 

ATO data matching processes may result in queries from the ATO. If so, you would need to explain how your partnership income or loss was calculated.

 

Alternatively, you could each choose to declare your share of the income or losses separately at question 15 of the supplementary tax return- as a net income or loss from carrying on a business.

 

Thanks, JodieH.

1 REPLY 1

Best answer

ATO Certified

Community Support

Replies 0

Hi @don't_know,

 

Thanks for your patience whilst we checked information with a specialist area regarding your query!

 

For income tax purposes, you should lodge a partnership tax return by following the Partnership-tax-return-instructions-2019.

 

Any gain or loss from the partnership will be declared in your individual tax returns at question-13 of the supplementary tax return.

 

ATO data matching processes may result in queries from the ATO. If so, you would need to explain how your partnership income or loss was calculated.

 

Alternatively, you could each choose to declare your share of the income or losses separately at question 15 of the supplementary tax return- as a net income or loss from carrying on a business.

 

Thanks, JodieH.

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