Q21.13.3

(Investor, capital gains)

Karl Kruger is a 38 year-old single Australian resident taxpayer. During the 2017/18 tax year, Karl received and retained the following records:

Account Summary received from XYZ Bank

Interest from Term Deposits

$ 17,200

Interest from Savings Account

350

Bank Charges relating to Term Deposits

40

Interest charged on line of credit (used for personal expenses)

715

4 February 2018 Dividend Statement from Eccy Ltd

Franked Dividend

2,100

Franking Credits

900

Rental Summary from Hawkeye Real Estate

Gross Rent Received

15,200

Rental expenses:

Agent's Commission

920

Council Rates

1,490

Landlord Insurance

290

Other Information:

Karl's rental property was built in 1999 when total construction costs of $200,000 were incurred. Karl has owned and leased the property since 2009.

Karl made mortgage repayments on his rental property of $20,000, of which $12,100 was principal.

Karl also sold the following assets during the year:

ASSET

PURCHASE

COST

ACQUISITION

DATE

DISPOSAL

DATE

SALE

PRICE

Quality shares

$12,000

12 Apr 12

10 May 18

$18,600

Oil Painting (collectable)

6,000

03 Mar 98

26 Feb 18

5,200

Crummy shares

4,000

21 Aug 08

03 May 18

2,500

\b.Calculate Karl's taxable income for the 2017/18 tax year.