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October 27, 2011 at 4:53 am #975623MRamsayMember
- Total posts: 4
I know this may be a really dumb question but here goes. We (my husband and myself) started a partnership in April this year. I have always done my own personal tax returns and was assuming that I put the partnership tax info on each tax return (the distributions from the business).
However I have since found out that you can only enter the business tax return on the individual tax return form if you are a sole trader. Thus you have to do a separate Partnership Tax Return (NAT 0659-6.2011) and just enter the distributions on both my husbands and my individual tax return.
My question is can I do the partnership tax return form by myself or do I have to have a registered tax agent to do it for me. I understand the content of the partnership return but just not sure if I am legally able to do it myself. I don’t see there really is a difference between doing a sole trader or partnership – content wise (apart from dividing the distributions between the partners).
Thanks for reading.
JennOctober 27, 2011 at 10:11 am #1075533Past-MemberMember
- Total posts: 1,815
It’s not a dumb question – but I would really urge you to use an accountant and develop a longterm business relationship with him/her. Taxation can get complicated when you are doing extra returns, and an accountant is able to lodge returns later than the general public. Plus, his/her fee is tax deductible in the next return.
My husband runs a company, I am a sole trader, and we have joint small investments. Despite our careful records, without our accountant it would be a nightmare.
Maybe I am biased, because my late dad was an accountant and I grew up knowing all of this and seeing it in action. I also witnessed heartache for clients when some clients didn’t take notice of the sage advice from my dad. But our own accountant/lawyer (Michael Quinn) is brilliant as well and I highly recommend his firm. (He has written some articles here on Flying Solo.)
.October 28, 2011 at 8:53 am #1075534Luth6322Member
- Total posts: 82
You should be able to download the instructions and forms from the ATO website. Just do a search or go under the business section and review the forms and things.
I’ve worked for large organisations that did lodge there own returns, so your allowed. However, as Karen mentions are you sure it wouldn’t worth getting a tax accountant that you can develop a relationship with to complete them for you.
I’m an accountant myself, have worked in practice, and I just don’t have the time, with our business, farm, and day job, to research the ever changing rules. My accountant can also look at my entire family group, individuals, trust and company and give the best advice as a whole, rather then just looking at one component.
Anyways, just a thought.
CarrieOctober 29, 2011 at 8:07 am #1075535MRamsayMember
- Total posts: 4
Thanks Carrie and Karen
I will definitely be getting an accountant to do our partnership tax return next year. The only reason I am doing my own this year is that we started the business in April and have only a very small margin of profit so we just don’t have the $ for a decent accountant this year. And there is not much to enter as we provide a home visit physiotherapy service.
So there are minimal setup costs, and our only income is received from services provided. So it is pretty easy. I have done personal tax returns for years but this is the first time I am doing a partnership.
I have downloaded all partnership tax return from the ATO and 3/4 of the way through, reading the instructions that I don’t know along the way.
Thanks once again for your input.
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