Due to a medical condition we had to end a contract on a leased car. Can the fee to end the lease be deducted?

[DS30 · Accepted solution]

Unfortunately no. Even though this lease was ended due to medical reasons, the IRS will still consider any fees related to ending a lease of a personal use vehicle as a nondeductible expense.

However, if this is a business vehicle lease and you are self-employed, then you could claim a miscellaneous business expense on your Schedule C related to these end-of-lease fees.