TAXATION FOR PARTNERSHIPS
Entering into a family or unrelated partnership has its benefits and pitfalls. As long as you adhere to the relevant tax requirements you will be able to enjoy the benefits of having an easy to set up and inexpensive business arrangement for as long as you want to.
If you are thinking about setting up a potential partnership, you are also at the perfect stage to set up a formal partnership agreement and buy sell agreement, which will save you time and money in the long run. Stones Sharp can assist you and your Solicitor to ensure that all matters are covered, that you and you business are protected and that all decision between you and your Business Partners are adequately documented.
With Australian Taxation laws continually being updated you need a Certified Practising Accountant that is up to speed on the latest developments and tax planning laws as taxation for partnerships goes beyond just completing a yearly tax return.
MANAGING YOUR PARTNERSHIP FOR FUTURE SUCCESS
What you as a partner contribute to the income of the Partnership will affect the Partnerships eligibility to certain taxation deductions. The Partnership may be receiving personal services or personal exertion income, which may affect taxation obligations for the Partners. A Partnership taxation return also uniquely informs how each partner declares their individual portion of the joint income or loss received on their individual tax return, even if the income has not physically been received. Certain calculations will need to be made when dealing with CGT, with each partner calculating their individual loss or gain on the share of the asset and not the Partnership itself. Consideration would also need to be given to the eligibility to access the Small Business Capital Gains Tax Concessions and to the actual calculations.
Stones Sharp CPA’s can competently assist and advise in all Taxation matters regarding Partnerships.
You and your business Partner may be able to offset your share of a trading loss against other personal income streams. Stones Sharp can assist and advise how to maximise the tax benefits and deductions for your Partnership business.
Contact us if you are entering into a partnership for the first time or planning on exiting one. Sound tax advice from Stones Sharp will be able to make the process as seamless as possible using partnership taxation best practices for your personal and joint benefit.