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Bank Breaking Fee's Tax Deductible ?

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  • Bank Breaking Fee's Tax Deductible ?

    Hi
    I need to sell my investment property within the next couple of months. I also need to pay the mortgage back to the bank with a large breaking fee of $35,000.

    Is the breaking fee considered a tax deductible expense ?

  • #2
    Hi FeverPitch,

    In general yes. Have a look at Public Ruling 12/03 by IRD and having a read through this should help you.

    Ross
    Last edited by Rosco; 16-08-2017, 02:17 PM. Reason: changed to more recent PR
    Book a free chat here
    Ross Barnett - Property Accountant

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    • #3
      My accountant deducted my $10k break fee as an expense last year.

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      • #4
        Is almost always deductible, but not always entirely in the year it's incurred - can sometimes need to be spread over the next few. In the case of a property sale there'd be no spreading though.
        AAT Accounting Services - Property Specialist - [email protected]
        Fixed price fees and quick knowledgeable service for property investors & traders!

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        • #5
          Really good to know guys thank you for the feedback. I'll look up those papers and double check with an accountant. thx Fever

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