You are working as a tax consultant in Mayfield, NSW. Yourclient is an investor and antique collector. You have ascertainedthat she is not carrying on a business. Your client provides thefollowing information of sales of various assets during the currenttax year:

(a) Block of vacant land. On 3 June of the current tax year yourclient signed a contract to sell a block of vacant land for$320,000. She acquired this land in January 2001 for $100,000 andincurred $20,000 in local council, water and sewerage rates andland taxes during her period of ownership of the land. The contractof sale stipulates that a deposit of $20,000 is payable to her whenthe contract of sale is signed and the balance is payable on 3January of the next tax year, when the change of ownership will beregistered.

(b) Antique bed. On 12 November of the current tax year yourclient had an antique four-poster Louis XIV bed stolen from herhouse. She recently had the bed valued for insurance purposes andthe market value at 31 October of the current tax year was $25,000.She purchased the bed for $3,500 on 21 July 1986. Although thefurniture was in very good condition, the bed needed alterations toallow for the installation of an innerspring mattress. Thesealterations significantly increased the value of the bed, and cost$1,500. She paid for the alterations on 29 October 1986. On 13November of the current tax year she lodged a claim with herinsurance company seeking to recover her loss. On 16 January of thecurrent tax year her insurance company advised her that the antiquebed had not been a specified item on her insurance policy.Therefore, the maximum amount she would be paid under her householdcontents policy was $11,000. This amount was paid to her on 21January of the current tax year.

(c) Painting. Your client acquired a painting by a well-knownAustralian artist on 2 May 1985 for $2,000. The painting hadsignificantly risen in value due to the death of the artist. Shesold the painting for $125,000 at an art auction on 3 April of thecurrent tax year.

(d) Shares. Your client has a substantial share portfolio whichshe has acquired over many years. She sold the following shares inthe relevant year of income:

(i) 1,000 Common Bank Ltd shares acquired in 2001 for $15 pershare and sold on 4 July of the current tax year for $47 per share.She incurred $550 in brokerage fees on the sale and $750 in stampduty costs on purchase.(ii) 2,500 shares in PHB Iron Ore Ltd. Theseshares were also acquired in 2001 for $12 per share and sold on 14February of the current tax year for $25 per share. She incurred$1,000 in brokerage fees on the sale and $1,500 in stamp duty costson purchase (iii) 1,200 shares in Young Kids Learning Ltd. Theseshares were acquired in 2005 for $5 per share and sold on 14February of the current tax year for $0.50 per share. She incurred$100 in brokerage fees on the sale and $500 in stamp duty costs onpurchase. (iv) 10,000 shares in Share Build Ltd. These shares wereacquired on 5 July of the current tax year for $1 per share andsold on 22 January of the current tax year for $2.50 per share. Sheincurred $900 in brokerage fees on the sale and $1,100 in stampduty costs on purchase.

(e) Violin. Your client also has an interest in collectingmusical instruments. She plays the violin very well and has severalviolins in her collection, all of which she plays on HI6028Taxation Theory, Practice and Law T2 2018 a regular basis. On 1 Mayof the current tax year she sold one of these violins for $12,000to neighbor who is in the Queensland Symphony Orchestra. The violincost her $5,500 when she acquired it on 1 June 1999. Your clientalso has a total of $8,500 in capital losses carried forward fromthe previous tax year, $1,500 of which are attributable to a losson the sale of a piece of sculpture which she sold in April of theprevious year.

Required: Based on this information, determine your client’s netcapital gain or net capital loss for the year ended 30 June of thecurrent tax year.