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I dont' understand what you are getting at. You need to borrow money to invest. And do this without mixing it along the way. If you have an empty account, which doesn't necessarily need to be new, you could deposit borrowed money, write a cheque and demonstrate clear source of funds from the...

Would be a good idea, but not neccessary

You can split however you like as long as you can argue, on a reasonable basis, which money was used for what and there are no mixed loans. I wouldn't combine the $50k and $100k loans unless both were used for the same property.

You should seek tax advice.

Yes, but your argument will fail.

I advise people to use a LOC to access equity because the money can be paid straight from the loan and not via transferring to a savings account then to the payment as this can cause interest deductibility to be broken.

Lender doesn't matter

1. I advise clients to use a LOC. 2. Yes

Assuming offset never contained any money other than the $50k borrowed... What does this mean? You borrowed $50k to park in an offset so the balance would be $320k. If you took money from the offset to buy shares you could argue this was borrowed (weak argument I think) and therefore the...

That changes things completely. You have a mixed purpose loan and only a portion (if any) of the interest will ever be deductible. Costly mistake!

Assuming the offset account contains no borrowed money: 1. You are not borrowing to buy shares so not direct tax issues. But taking the money from the offset will mean the interest on the loan increases. This loan was for the IP so the increased interest would be claimable against the IP. 2...