How to Calculate Loan Interest Portions Based on Use

Joshua Easton Tax

Q: Mr A has obtained a loan $250k using his residential house as security. For example, he used $100k for personal use and used $150k for investment use. Unfortunately, his loan statement does not distinguish the monthly interest and principal payment for personal use and investment use. What’s the best way to calculate the interest and principal payment of investment …

Tax, Active Assets and Small Business Concessions

Joshua Easton Tax

Q: Purchase of farming property in May 2013 for $1,600,000 in the family trust. The family trust is a business of primary production. This 160-acre property has since been rezoned to residential R1 and approximately 800 lots will be available for sale at 550 sq. metre minimum lot sizes. We plan to sell the 160-acre property prior to development with …

Australian Tax Residency

Joshua Easton Tax

Question Part A Hi, I have a client that has a question surrounding Australian Tax Residency. His circumstances are as follows: Had been an Australian resident since birth In 2007 he moved to Indonesia permanently with his spouse & 2 children They rented out their Principal Place of Residence for 2 years & then sold it In 2012 he split …

Capital Loss Question

Joshua Easton Tax

Question The details are of a person who is involved in only a couple of racehorses. On our research it appears racehorses are treated as personal use items. In 2014 he purchased a racehorse for $180,000, had it trained and cared for, with costs of about $120,000. Overall cost about $300,000 invested. The horse never raced and eventually was sold …

HR Staff Question

Joshua Easton Tax

Question We are requiring assistance to resolve an issue with an employee’s personal hygiene. Our employee has attended work of several occasions with very distinct body odour. This person is our first point of contact for visitors to the premises and works in our admin department which comprises 4 staff in total. Our office is open plan and includes a …

Christmas Message 2018

Joshua Easton Tax

How to Avoid Christmas Party Disasters The festive season can be a happy and joyful time but it can also be a period when unruly staff behaviour can ruin careers and damage working and business relationships. The Christmas and New Year period are notorious for employee related incidents that can have a major detrimental impact on an organisation no matter …

Franking Q and A

Joshua Easton Tax

Scenario: 2015 – company had profit of $10,000. Company paid 30% tax 2016 – company had profit of $12,000. Company paid 28.5% tax 2017 – company had a loss of $100.00 2017 – company ceased trading, capital losses of $160,000 2018 – company had no income, trading losses of $2,000 Questions Can the company pay 30% franked dividends to its …