Are break out costs tax deductible?

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From: David U


Hi

Quick question: If for example, I have a fixed 5 year i/o loan and I refinance the loan after say 2 years, are the break out costs that the financial institution charges tax-deductible or are they of a capital nature?


Can anybody enlighten me?

Thanks for your help in advance

David U
 
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Reply: 1
From: Rolf Latham


Hi DAvid

Normally my clients treat them as a borrowing cost - they are therefore deductible/depreciable - but theres a CPA lurking here somewhere so this is just an opinion

Ta

Rolf
 
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Reply: 2
From: John P


I asked my accountant the same question some time ago and his answer was definitely Yes!!!!
 
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Reply: 2.1
From: Dale Gatherum-Goss


HI

I agree. You can claim the costs involved.

Cheers

Dale
 
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Reply: 2.1.1
From: Scott Marshall


Claim or not, its still money out of your pocket. Balance it with the cost of continuing on......
Scott
 
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