When a loan is used for both property and shares, it needs to be split in TaxTank. This allows you to track property equity correctly while also allocating interest based on how the funds were used.
Step 1 – Calculate the split
First, determine how much of the loan was used for:
Property
Shares
Example
Loan amount: $500,000
$300,000 used for Property
$200,000 used for Shares
Formula
Property % = Property portion ÷ Total loan
Shares % = Shares portion ÷ Total loan
Calculation:
Property = $300,000 ÷ $500,000 = 60%
Shares = $200,000 ÷ $500,000 = 40%
Step 2 – Allocate the loan (Property Tank only)
Next, allocate the loan based on the property portion only:
Go to Bank Feeds
Select the loan account → Allocate
Assign:
60% to Property A (Property Tank)
Leave the remaining 40% unallocated
👉 The share-related portion is excluded, as TaxTank does not calculate equity for share holdings
Step 3 – Allocate the interest (Property + Holdings Tanks)
Interest must be split using the same percentages calculated in Step 1.
60% → Property Tank (Property A → Interest expense)
40% → Holdings Tank (Select the relevant 'Interest expense' category)
You can:
Split transactions manually, or
Set up bank rules to automate the allocation
Key point
Loan allocation = equity tracking (Property only)
Interest allocation = based on usage (Property + Shares) using the 'Split' feature