rent penalty

[jvogel]

What is the name of your state? California
I broke a lease and had to pay a 3 month ($3,000) penalty. Is the penalty tax deductible?

 

[abezon]

If you have a business & are deducting the rent as an operating expense, you can deduct the lease termination fee, which is what the "penalty" is. If this was just your apartment, you can't deduct anything.