Changes to the ATO matching rules mean the method with which income and deductions for Partnerships and Trusts are entered into HandiTax 2024 has also changed. For more information see How do I enter Item 13 income and deductions in HandiTax 2024 for an individual.
For HandiTax 2023 and prior:
Partnership deductions
Enter the applicable partnership details and select P in the distribution type box.
Enter the Name of Partnership next to it.
Under Partnership deductions press F5 on your keyboard and highlight the appropriate item from the list then press Enter.
Example: Taxpayer has a Partnership distribution and a Partnership deduction.
4. Tab or click into the next field and press F5, select the correct type and press Enter.
Note: The type of deduction will automatically populate, do not edit the
description as this will result in an SBR error.
5. Enter the amount at PP Ded or NPP Ded click Save item.
Trust deductions
Enter the applicable Trust details and select T in the distribution type box.
Press F5 on your keyboard and highlight the appropriate item from the list then press Enter.
Example: Taxpayer has a trust distribution and trust deduction.
3. Tab to the next field and select F5, select the correct type and press Enter.
Note: The type of deduction will automatically populate, do not edit the description as this will result in an SBR error.
4. Enter the amount at PP Ded or NPP Ded and click Save item.
Notes:
The Small Business Income fields are treated as “additional information” fields within Item 13, thus any values entered in these fields do not affect taxable income and these values should already be included in NPP/PP income fields.
Deductions with code “S” will only offset against income entered in the “net small business income” fields in Item 13 and will only reduce 13D and will NOT affect taxable income.
Deductions with code “O” will reduce the taxable income “Net NPP amount” and will show in item 13Y.
If you are using the Y for automatic transfer from the partnership\trust tax return to Item 13 on the I form, the user should not manually overwrite the Name of Partnership/Trust as this will be automatically populated.
If answering Y to automatically transfer details and you manually type in the Partnership/Trust name, this will result in an SBR error.