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Posts Tagged ‘brightline’

CAN YOU DEDUCT HOLDING COSTS ON PRIVATELY USED PROPERTY THAT IS TAXED ON SALE?

By Garreth Collard, Senior Property Accountant | April 7, 2026
Anxious Investor looks at a tax bill from IRD

Can you deduct holding costs on privately used property that is taxed on sale? That’s a good question. An example might be where you sold your property, perhaps a holiday home. It is caught by the Brightline Test (currently 2 years) and so the profit from the sale is taxable. You incurred some “holding costs”…

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