turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

zsp90
New Member

Are early termination fees on a lease deductible?

In 2017, I moved out of my rental and started to sublet it. A few months later I was forecasting a loss if I decided to fulfill my lease term and decided to terminate my lease after the last sublet tenant left. As a result, I was charged an early termination fee. Can I claim this as an expense on my Schedule E filings as my sublet income qualifies as rental income?

If so, do I file it under Other Expense and list it as an Early Termination Fee?

Thanks in advance!

x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Reply
Anita01
New Member

Are early termination fees on a lease deductible?

No, you could not claim it.  It was not an ordinary and necessary expense of renting the property and was not even caused by operating the property as a rental.

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question