Taxation of Partnerships What is a partnership for taxation purposes? How are the following taxed: 'ordinary' partnerships
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Taxation of Partnerships
- What is a partnership for taxation purposes?
- How are the following taxed:
- 'ordinary' partnerships (including 'statutory partnerships' for taxation purposes);
- limited partnerships;
- incorporated limited partnerships.
- Do ordinary partnerships have to file a tax return? Why? Under what section?
- What are the two steps involved in determining the share of an 'ordinary' partnership's profit or loss that should be included in an individual partner's income?
- What is the 'net income' of the partnership?
- Why are carry-forward losses under Div 36 not allowed as deductions when you calculate 'net income' of a partnership?
- Why are deductions allowable under s 290-150 of the ITAA 97 not allowed as deductions when you calculate 'net income' of a partnership?
- Why is partnership net income calculated 'as if the partnership were a taxpayer who was a resident'?
- Define 'partnership loss'.
- What is the effect of s 26-35 on a partnership's allowable deductions?
- How are the following treated in calculating partnership net income:
- A is a partner in the firm of A, B and C which trades in Australia and Singapore. The firm makes a net income of $300,000 or which exactly half is earned from its Australian operations and half from its operations in Singapore. A and B are Australian residents - though exactly half way through the tax year B moves to Singapore to expand its operations (and intends to remain there indefinitely) and C is a Singaporean resident. Assuming each partner is entitled to an equal share of all profits earned by the firm, calculate how much of their shares will be taxable in Australia.
a. salaries paid to partners;
b. 'drawings' by partners;
c. 'interest' paid by the partnership on capital contributions by the partners;
d. 'interest' paid by partners to the partnership on overdrawings;
e. 'interest' paid by the partnership on loans made to it by a partner?
12. A and B are in partnership. The partnership pays their spouses $50,000 a year to come in on Saturday morning and do some filing. To what extent can the partnership claim a deduction for those amounts? Why?
- How can you validly reduce a non-resident partner's exposure to Australian tax on his or her share of the net income of the partnership?
- When do partners derive their shares of partnership net income for taxation purposes?
- What is the effect of either the introduction or the retirement of a partner on the tax liability of the members of the partnerships?
- What is the effect of the death of a partner for taxation purposes?
- What are the consequences of assigning a part of your interest in the partnership to someone else?
- on your income tax liability;
- on the assignee's income tax liability;
- on your CGT liability;
- on the assignee's CGT liability.
- What is the difference in the tax liability of resident and non-resident partners?
- The firm of A, B and C sells its office building for a large capital gain. How will that capital gain be taxed in the hands of the individual partners?
- What is the effect of s 94 on the share of partnership net income that is included in the income of a partner who does not have real and effective control over the disposal of that income?
Related Book For
Auditing a business risk appraoch
ISBN: 978-0324375589
6th Edition
Authors: larry e. rittenberg, bradley j. schwieger, karla m. johnston
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