Deferred non-commercial losses from partnership

[QLD_seeker]

Hi

We are having trouble entering prior year deferred NCL losses from partnership (non-PP) in a personal tax return (one of the partners) in AE for FY 2016/17.

The partnership ceased in 2017 with nil distribution to partners, ie no activities at all.

After entering details in Item P9 (label G code 8 and label H and I of prior year deferred NCL) and Item 16 label F, the losses that must be carried forward to be offset against future income is instead added to the overall taxable income in the current year!

Please help.

Many thanks

[ilmar · Accepted solution]

Hi @QLD_seeker,

Welcome to the MYOB community forum, we hope you find it a useful resource!

To get the losses to carry forward you will need to fill out the 'Distributions from Partnerships' schedule which is under label 13N. The main fields to be filled out in that schedule is the Non-PP income as well as the Non-PP Non-commercial business losses (see image below).

[QLD_seeker]

Thanks so much for your help Ilmar!

Just to confirm with you that I'll still need to enter the deferred NCL under Business Items Label P9 and under Income Label 16 (F) after filling out the 'Distributions from Partnerships' schedule as per your advice above?

Many thanks again!

[ilmar]

Yep @QLD_seeker in addition to filling out 'Distributions from Partnership' schedule you will need to also fill out label P9 and Label 16, but always best to double check with the ATO if there are any concerns in filling out the return,

[QLD_seeker]

Thanks so much @ilmar. I really appreciate your kind assistance.

Cheers