PDA

View Full Version : Deduction for rent paid after early termination


vatant
Mar 6, 2008, 06:49 AM
I had a 6 month lease extending from Jan07-Jun07. I terminated the lease early and had to move out of state starting Feb07. The landlord asked me to pay March and Apr rent which I agreed to. My workplace on the other hand, gave me a relocation package amounting to $5k but again, the "bonus" added to my pay check was taxed. Is it possible for me to get deduction on March and April rent paid to the landlord since I wasn't there?

If not, can I somehow get the taxed $ amount on the 5K bonus given to me by the employer?

I am confused here, since the amount paid as bonus after taxed actually did not help me pay off all the things back in my old base.

AtlantaTaxExpert
Apr 18, 2008, 12:55 PM
Negative; early lease termination penalties are NOT deductible as moving expenses.

IntlTax
Apr 18, 2008, 06:09 PM
You could ask your employer for an additional bonus to cover the taxes you owe as a result of the payment not being deductible.