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Monday, April 17, 2017

Small Business Tax Offset - Partnership and Trust Tax Returns Calculation Worksheet Query

topic Re: Small Business Tax Offset - Partnership and Trust Tax Returns Calculation Worksheet Query in Tax and Business Activity Statements http://community.myob.com/t5/Tax-and-Business-Activity/Small-Business-Tax-Offset-Partnership-and-Trust-Tax-Returns/m-p/441343#M7487

I did, actually. You can't distribute the SBTO amount through entities to the individual along with the income. In the individual's tax return you have to prepare the Share of partnership small business income schedule (sbp) or Share of trust small business income schedule (sbt).

Convoluted, but the estimate included the SBTO and the NOAs matched.

Tue, 22 Nov 2016 03:31:10 GMT DanielOP 2016-11-22T03:31:10Z Small Business Tax Offset - Partnership and Trust Tax Returns Calculation Worksheet Query http://community.myob.com/t5/Tax-and-Business-Activity/Small-Business-Tax-Offset-Partnership-and-Trust-Tax-Returns/m-p/427020#M7180

Hi,

 

We are aurrently trying to complete client's tax returns which includes a Partnership and Individuals who are eligible for the Small Business Tax Offset.

 

We are completing Item 5 Label V within the Partnership return, however are having difficulty understanding how using the worksheet for this label matches what the ATO require.

 

For example, the business has income of $1,000 and only a deduction of accounting fees for $200. Therefore the net business income is $800, however the income for Small Business Tax Offset purposes should be $1,000 as accounting fees need to be added back when calculating income for this purposes. We have discussed this with the ATO and they have advised our understanding of the offset through this example is correct.

 

The worksheet within the Partnership tax return works the opposite way. It populates the income from the business schedule to be $800, and the 'subtracts' the accounting fees to reduce the income for Small Business Tax Offset to $600.

 

Can you please advise how to understand the software.

 

Thanks,

 

Anna

Mon, 01 Aug 2016 01:24:17 GMT http://community.myob.com/t5/Tax-and-Business-Activity/Small-Business-Tax-Offset-Partnership-and-Trust-Tax-Returns/m-p/427020#M7180 Anna_Walker_DKM 2016-08-01T01:24:17Z
Re: Small Business Tax Offset - Partnership and Trust Tax Returns Calculation Worksheet Query http://community.myob.com/t5/Tax-and-Business-Activity/Small-Business-Tax-Offset-Partnership-and-Trust-Tax-Returns/m-p/429324#M7221

I am having the same issue.

Wed, 17 Aug 2016 02:53:36 GMT http://community.myob.com/t5/Tax-and-Business-Activity/Small-Business-Tax-Offset-Partnership-and-Trust-Tax-Returns/m-p/429324#M7221 CraigMS 2016-08-17T02:53:36Z
Re: Small Business Tax Offset - Partnership and Trust Tax Returns Calculation Worksheet Query http://community.myob.com/t5/Tax-and-Business-Activity/Small-Business-Tax-Offset-Partnership-and-Trust-Tax-Returns/m-p/430783#M7238

I am having the same issue. The schedule is subtracting the accounting fees and donations that I am inputting, rather than adding them back as the schedule should. I found the details in the Act and it stated that adding back the accounting fees and donations will increase the offset.

 

In your example, the SBE income should be $1200, assuming that accounting fees were in the initial $1000. Therefore $1200 would be divided by the taxable income of the individual and then calculated against the individual's tax liability. It is then multiplied by 5% to create the offset.

 

We did input the data in a tax return and manually calculated the offset. It confirmed that the calc is incorrect for the purposes of this offset.

Mon, 29 Aug 2016 07:39:37 GMT http://community.myob.com/t5/Tax-and-Business-Activity/Small-Business-Tax-Offset-Partnership-and-Trust-Tax-Returns/m-p/430783#M7238 TimCollins 2016-08-29T07:39:37Z
Re: Small Business Tax Offset - Partnership and Trust Tax Returns Calculation Worksheet Query http://community.myob.com/t5/Tax-and-Business-Activity/Small-Business-Tax-Offset-Partnership-and-Trust-Tax-Returns/m-p/435162#M7300

My query is slightly different to the topic posted but it's related to the SBTO.

 

My query - is a trust distributed net business profit to another trust and from the other trust distribute to individual beneficiaries. Will the "the other trust" income distribution to the individuals get the SBTO?

 

The share of net small business income recorded on Item 8 of the "received Trust return" does not flow thru to the Statement of distribution for the individuals beneficiary.

 

My question is the SBTO can't be distributed from the "received trust return" to the individuals?

 

Is it only from the original trust return which has the net business income distributed then individuals beneficiay gets the share of SBTO?

 

Or do we manually entered the share of net small business income in the "individuals" returns as there is no option in the "received trust" to flow thru the info to the indvidual return?

 

Please advise.

 

Thanks

 

Mon, 03 Oct 2016 01:31:14 GMT http://community.myob.com/t5/Tax-and-Business-Activity/Small-Business-Tax-Offset-Partnership-and-Trust-Tax-Returns/m-p/435162#M7300 DT-Tracy 2016-10-03T01:31:14Z
Re: Small Business Tax Offset - Partnership and Trust Tax Returns Calculation Worksheet Query http://community.myob.com/t5/Tax-and-Business-Activity/Small-Business-Tax-Offset-Partnership-and-Trust-Tax-Returns/m-p/437823#M7382

I have this exact issue. Business income from partnership is distributed to trust with SBTO amount which shows in Distribution from Partnership income worksheet in Trust tax return. Trust also has small amount of its own business income, but Small Business Income Worksheet doesn't pick up the SBTO income amount that should be flowing through from the Partnership.

Fri, 21 Oct 2016 00:51:25 GMT http://community.myob.com/t5/Tax-and-Business-Activity/Small-Business-Tax-Offset-Partnership-and-Trust-Tax-Returns/m-p/437823#M7382 DanielOP 2016-10-21T00:51:25Z
Re: Small Business Tax Offset - Partnership and Trust Tax Returns Calculation Worksheet Query http://community.myob.com/t5/Tax-and-Business-Activity/Small-Business-Tax-Offset-Partnership-and-Trust-Tax-Returns/m-p/439841#M7451

DanielOP, I am having the exact same issue. Did you find a solution? Thanks.

Tue, 08 Nov 2016 01:14:54 GMT http://community.myob.com/t5/Tax-and-Business-Activity/Small-Business-Tax-Offset-Partnership-and-Trust-Tax-Returns/m-p/439841#M7451 CJohnson 2016-11-08T01:14:54Z
Re: Small Business Tax Offset - Partnership and Trust Tax Returns Calculation Worksheet Query http://community.myob.com/t5/Tax-and-Business-Activity/Small-Business-Tax-Offset-Partnership-and-Trust-Tax-Returns/m-p/441343#M7487

I did, actually. You can't distribute the SBTO amount through entities to the individual along with the income. In the individual's tax return you have to prepare the Share of partnership small business income schedule (sbp) or Share of trust small business income schedule (sbt).

Convoluted, but the estimate included the SBTO and the NOAs matched.

Tue, 22 Nov 2016 03:31:10 GMT http://community.myob.com/t5/Tax-and-Business-Activity/Small-Business-Tax-Offset-Partnership-and-Trust-Tax-Returns/m-p/441343#M7487 DanielOP 2016-11-22T03:31:10Z

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