Bank Breaking Fee's Tax Deductible ?

[FeverPitch]

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 ?

[Rosco]

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

[Learning]

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

[Anthonyacat]

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.

[FeverPitch]

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