Is my leasing termination penalty tax deductible?

September 5th, 2010 darlees Posted in Tax penalities | 2 Comments »

I have recently bought a new home, and I had to terminate my 1 year rental contract earlier from my previous apartment. I had to pay $2500 for the termination penalty according to the contract. So would this penalty be tax deductible? Thanks.


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2 Responses to “Is my leasing termination penalty tax deductible?”

  1. happygreengrass Says:
    September 5th, 2010 at 9:24 am

    No, it is not. The fee is not related to the purchase of your home, but to a violation of a separate contract (your lease). Unfortunately, that means you get stuck with the tab…

  2. Judy Says:
    September 5th, 2010 at 9:40 am

    No, not deductible

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