Question

Are early termination fees on a lease deductible?

Forum|Forum|7 years ago
June 5, 2019
1 reply
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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!

TurboTax Premier Online

A

Anita01

Employee

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.