In July 2017, Emma purchased a bookselling business for $15,000. The business is carried on from a shop that is rented by her. She tells you that for the income year ended 30 June 2019she has had a very tough trading year and that her total sales for the year were only $18,000 and, with expenses of $26,000, the business has in fact made a loss of $8,000 for the year. Emma estimates that the value of her trading stock and plant and equipment come to only $12,000 and that the market value of the shop building (out of which she operates the book shop) as at 30 June 2019 is $250,000. She only rents the shop building.

Emma also received a bank interest of $20,000 and has no other income and expenses for the year ending 30 June 2019.

Required Calculate what Emmas taxable income is for the year ended 30 June 2019. You should discuss any rules that may apply to affect how this taxable income is calculated.