Join Australia's most dynamic and respected property investment community

Blended Loan Example

Discussion in 'Accounting & Tax' started by Paul@PFI, 10th May, 2016.

Tags:
  1. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,358
    Location:
    Sydney
    Today I encountered a client with a blended loan. The LOC was used for a deductible use and since 2014 the client keeps drawing additional private money from time to time.

    So it is required to apportion the loan interest and monthly fees. And the deductible % is continually changing.

    Here is the excel calc of this loan. Such a calculation would quickly satisfy the ATO that a reasonable basis is being used to determine tax deductions and that it is being changed. Note how repayments must also be apportioned across both purposes and the % is updated too.
     

    Attached Files:

    Frazz and Terry_w like this.
  2. datto

    datto Well-Known Member

    Joined:
    23rd Jun, 2015
    Posts:
    1,390
    Location:
    Mt Druuiitt
    So, you charged the client some extra?
     
  3. Bran

    Bran Well-Known Member

    Joined:
    20th Jun, 2015
    Posts:
    3,213
    Location:
    At work
    Good to know this is quite possible