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    vatant's Avatar
    vatant Posts: 2, Reputation: 1
    New Member
    		  
    #1

    Mar 6, 2008, 06:49 AM
    Deduction for rent paid after early termination
    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's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Apr 18, 2008, 12:55 PM
    Negative; early lease termination penalties are NOT deductible as moving expenses.
    IntlTax's Avatar
    IntlTax Posts: 831, Reputation: 23
    Tax Expert
    		  
    #3

    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.
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