Question
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
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: |
|
Agents Commission | 920 |
Council Rates | 1,490 |
Landlord Insurance | 290 |
Other Information:
- Karls 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 |
a) Calculate Karls net capital gain/loss for the 2017/18 tax year
b) Calculate Karls taxable income for the 2017/18 tax year.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started