The business records for the direct selling partnership for the year ended 30 June 2003 show the following results.
P/ship |
Alysia's share |
|
Total business income |
$4,000 |
$2,000 |
Total expenses |
$6,000 |
$3,000 |
Net income or loss for 2003 |
$2,000/L |
$1,000/L |
For the income year 2003:
- the primary production and professional artists business exception in subsection 35-10(4) does not apply
- the activity does not satisfy any of the four tests in Division 35
- the assessable income test (s35-30)
- the profits test (s35-40)
- the real property test (s35-45)
- the other assets test (s35-45), and
- the Commissioner's discretion in s35-55 has not been exercised.
Alysia's net loss from the direct selling partnership must be deferred to the next income year that the activity, or one of a similar kind, is carried on.
Tax return completion
Alysia's tax return would include the following details:
Alysia will also require a copy of the 2003 Business and Professional Items schedule (BPI) and the 2003 Taxpack supplement (Supp).
Item |
Label |
Amount |
Comment |
12 (Supp) |
O |
5,000 |
Alysia's sum of distributions from the 2 partnerships for 2003 |
Net non PP distribution |
5,000 |
||
P3 (BPI) |
B |
2 |
Number of business activities |
P4 (BPI) |
C2 |
X |
Commenced business |
P9 (BPI) |
D |
Direct selling |
|
E |
52596 |
ANZSIC code required for tax agent prepared returns |
|
F |
P |
||
G |
8 |
Loss is required to be deferred |
|
H |
Nil |
No prior year deferred non-commercial loss from this activity |
|
I |
1,000 |
Net loss for 2002-03 for the direct selling activity |
|
15 (Supp) |
F |
1,000 |
See item P9, label I |
H |
1,000 |
The sum of F &G |