Karin Jensen is 39 years old (she was born on 1 November 1980) and is an Australian

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Karin Jensen is 39 years old (she was born on 1 November 1980) and is an Australian resident for tax purposes. She is employed by a large accounting firm as a human resources manager and is based at the accounting firm’s city office in Brisbane. She is currently single, has no dependants and resides in her own home, an apartment in the Brisbane suburb of Indooroopilly.

In relation to her employment income, Karin’s income statement for the 2019/20 income year showed the following details:

Gross salary payments $95,000

Total tax withheld (PAYG credits) $24,595

Work-related expenses

On 27 August 2019 Karin paid $462 (including GST) for her annual Australian HR Institute (AHRI) membership fee. The fee covers Karin’s Fellow Certified Practitioners HR (FCPHR) membership for the period 1 September 2019 to 31 August 2020. Her employer reimbursed her in full for this expense on 10 September 2019.
On 28 August 2019 Karin paid $2,640 (including GST) to attend the AHRI National Convention & Exhibition, which was held at the Brisbane Convention and Exhibition Centre on 17-19 September 2019. Attendance at this annual convention enables Karin to keep up to date with developments in her field and to network with her peers. As well as the registration fee, Karin incurred the following expenses:
- For the first two days of the convention, Karin travelled by public transport to the convention location at the Brisbane Convention Centre from her home and back again. This travel amounted to a total cost of $12 (including GST).
- On the final day of the convention, the temperature was unseasonably hot; so, to stay comfortable Karin travelled to the convention (and back home again) via taxi at total cost of $48 (including GST).
- An integral part of the networking at the convention is attendance at the gala dinner. To ensure that she looked good for this event, Karin bought a new dress on 14 September 2019 to the wear to the gala dinner at a cost of $385 (including GST).
Karin uses a briefcase at work as it is handy when carrying files between meetings and adds to her professional persona. As her old briefcase was starting to look a bit tatty, Karin treated herself to a new leather briefcase on 23 November 2019 at a cost of $825 (including GST). Her employer reimbursed her in full for this expense on 5 December 2019.
Karin uses her mobile phone for both work and personal use. She has been on the same

$110 per month (including GST) mobile phone plan for the last two years and on the 1^st of each month, her employer reimburses her in full for the previous month’s phone bill. Note that using an itemised phone bill each year, Karin has reliably estimated that 65% of her phone use is work- related (and this work-related use estimate takes into account periods when she has been on leave).

Other income

On 28 July 2019, Karin deposited $50,000 in a six-month term deposit with Macquarie Bank paying 2.0% interest per annum. Rather than receiving the interest on the maturity of the term deposit on 28 January 2020, Karin elected to rollover the interest of $500 together with the principal of $50,000 for a further six months at an interest rate of 1.5% to mature on 28 July 2020. Karin estimates that approximately $315 in interest would be accruing on this new term deposit from 28 January 2020 to 30 June 2020.
On 31 March 2020, Karin received a dividend of $0.75/share on her Wesfarmers Ltd share holdings. At this time, she held 10,000 shares in the company. Note that the dividend was fully franked at a company tax rate of 30%.

During the 2019/20 income year Karin disposed of some property as outlined below.

TRANSACTION 1: WESFARMERS LTD SHARES

On 2 December 2019, Karin signed a contract to purchase 10,000 shares in Wesfarmers Ltd at a cost of $41.00 per share, with the ownership transferring to her on 6 December 2019. At the time of purchase, Karin paid $100 (including GST) in brokerage fees to buy the shares. Also, on 2 December 2019, Karin paid a $550 (including GST) loan establishment fee to set up a $375,000 interest-only investment loan to buy the shares.

Karin originally intended to hold on to the shares for the 10-year duration of the loan; however, following the share market crash in late February 2020, she became spooked and vowed to sell the shares as soon as the share price exceeded $43.50 so that she could repay the investment loan and cover her costs. Hence, she entered into a contract to sell the shares at a price of $43.60 per share on 24 June 2020. Note that at the time of the sale, Karin paid $100 (including GST) in brokerage fees. The contract was settled on 29 June 2020 and she repaid the loan on the same day. Note that Karin has incurred a total of $17,500 in interest on this loan.

PLEASE PROVIDE ANSWER IN THIS TABLE

Step 1	Q1	Has a CGT EVENT happened to Karin? Yes, CGT event …
	Q2	Is the asset a CGT ASSET?
	Q3	Does an exception or EXEMPTION apply?
	Q4	Can there be a ROLLOVER PROVISION? No.

Step 2

Work out the amount of the CAPITAL GAIN or LOSS

Capital gain?

Capital proceeds	$	s
*less* Cost base
1^st element – Acquisition costs
Acquisition cost	$	s
2^nd element – Incidental costs
$	s
$	s
$	s
3^rd element – Costs of ownership
$	s
$	s
4^th element – Capital expenditure to increase value
$	s
5^th element – Capital expenditure to defend title
$	s
Total	$
Initial capital gain	$	s