I have been out of the tax 'game' for a while but I don't think there are limitations on claiming an on-going tax loss on property. Of course, subject to the transaction being at arm's length and the expenses being legit - as long as it is a commercial arrangement.
There was / is a ruling on 'hobbies ' where people have tried to claim losses and pose as a legit business. Essentially, from memory, the turnover had to be over $20,000 or the capital invested had to exceed $100,000 for it to be written off against other income otherwise it was isolated to be written off against future income from that activity.
Given (if I am right) that a property loss can go into perpetuity it does show imbalance in the system in that losses are 100% offset yet gains are taxable to the extent of 50% if held over 1 year.
You would expect that eventually the property would hit the 'green' but again, many different stories in this city :)
If you go back to September 1985 when CGT was introduced there would be many interesting stories in the RE from the National capital that were transacted.
In short, I don't think there is a limit in off-setting genuine property losses but I am not the pope :)
