You could put money in an offset at any time.
Keep in mind you would want any cash in the non deductible home loan. Even though the interest may not be deductible now for this property, it can be used to reduce CGT upon sale.

1. impossible to answer without information. Keep in mind negatives tend to become positives (otherwise no point in investing)

2. Only a legal owner can mortgage the property. I think you mean ‘loan’ here. Yes with some lenders – but should you?

3. If you are spouses the interest may be deductible to the legal owner even if both on the loan TR 32/93 paragraph 6. But you should enter into a formal loan agreement so the non owner spouse on lends the owner.

4. see 3 above.

Best to get some tax advice.

wow, great posts guys.

D.T. do you find properties for buyers – like a buyers agent?

even if you do not claim the depreciation it would needed to be added back for CGT purposes. It is only the capital works deductions too.

Why not call BMT or depreciator describe your property and they will tell you if they think it worthwhile getting one.

Yes CGT would be assessed at market value.

What state is the property located in?

I am not an accountant, but here are my answers

1. maybe. I would suggest you avoid joint loans completely.
2. not so clear cut because you would be borrowing to pay out a spouse’s share of the loan and she didn’t use her loan to purchase an income producing asset.
3. depends how you transfer. Assuming your loan was deductible to yourself in full and assuming sell your 50% to your spouse, you would only be able to claim half of the interest. You cannot claim the other half as it relates to a part you no longer own. However if your spouse borrows to buy your 50% she may be able to claim the interest on this loan. If you transfer without consideration then she will not be able to claim any interest.

4. Yes. Transfer is a CGT event.

The land under the second house would not have been the main residence since its acquisition.

The 1 year only relates to the 50% CGT discount – which would be calculated from the date the land was acquired usually.

There is a VIC case, from memory, where the SRO took on a person in a situation like this, based on the amount of electricty usage.

I suggest you read the act in full. You are not being prosecuted at this stage, and they may not be able to prosecute because of time limits.

The accountant is wrong.

The 6 year rule relates to absences.

where you split the land of the PPOR and end up with 2 houses the main residence exemption can only apply to one of those houses at any point in time. The portion of the land and construction cost for the new house cannot be eligible for the main residence exemption (until after living in it) as you would have already claimed this on the other property. section 118-110 of the ITAA 1997.

A new house sold within 5 years may result in GST being payable, but this is a different issue.

Commercial. Substantially renovated property. residential in some instances can all be subject to GST.

If the property is residential housing, not new, then GST probably won’t apply. Best to ask the vendor to remove the clause if that is the case.