Blended Loan Example

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

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  1. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    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.
     

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    Frazz and Terry_w like this.
  2. datto

    datto Well-Known Member

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    So, you charged the client some extra?
     
  3. Bran

    Bran Well-Known Member

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    Good to know this is quite possible