Joseph incurred a number of expenses in relation to his legal practice and investment property for the current tax year ended 30 June:

• He paid $1200 in borrowing expenses on 1 February of the current tax year to his bank for a 12 year loan to purchase a new rental property that commenced earning income on that day.

• He paid $2000 for six months supply of stationery to use in his business on 13 June of the current tax year. The stationery was delivered on that day and he had $1500 of that stationery on hand at 30 June of the current tax year.

Assuming that Joseph is not eligible to be a small business entity (SBE) what amount can Joseph claim as deductions (to the nearest dollar) for the current year ended 30 June?

Select one:

1. $2099.

2. $3200.

3. $2000.

4. $1200.

5. Nil