SearchDeductibility of break fees
Karen asks:
(updated on Friday, May 26th 2017)
Are mortgage break fees on the sale of a rental property deductible?
Our Experts Answer:
Yes, mortgage break fees are deductible - even when the property is being sold - but the timing of the deduction can differ.
If the financial arrangement is terminated - ie: the loan is repaid or refinanced - the fee is deductible when incurred. But if the financial arrangement continues - eg: a fixed rate is broken but the loan is not repaid - the break fee must be amortised over the remaining term of the loan.
Most Read
| Unity First Home Buyer special | 3.95 |
| SBS FirstHome Combo | 3.99 |
| TSB Special | 4.49 |
| SBS Bank Special | 4.49 |
| Co-operative Bank - First Home Special | 4.49 |
| Unity Special | 4.49 |
| ICBC | 4.49 |
| ASB Bank | 4.59 |
| Westpac Special | 4.59 |
| Kiwibank Special | 4.59 |
| AIA - Go Home Loans | 4.59 |
| Unity Special | 4.89 |
| ICBC | 4.89 |
| BNZ - Std | 4.89 |
| Kiwibank Special | 4.89 |
| Kainga Ora | 4.95 |
| China Construction Bank | 4.95 |
| TSB Special | 5.09 |
| ASB Bank | 5.09 |
| SBS Bank Special | 5.09 |
| Nelson Building Society | 5.09 |
| AIA - Go Home Loans | 5.09 |
| Westpac Special | 5.59 |
| ICBC | 5.65 |
| Kainga Ora | 5.69 |
| TSB Special | 5.69 |
| SBS Bank Special | 5.69 |
| AIA - Go Home Loans | 5.69 |
| ASB Bank | 5.69 |
| BNZ - Std | 5.79 |
| Co-operative Bank - Owner Occ | 5.89 |
| Kiwibank Special | 5.89 |
| China Construction Bank | 5.99 |
| SBS FirstHome Combo | 3.29 |
| AIA - Back My Build | 3.34 |
| SBS Construction lending for FHB | 3.74 |
| CFML 321 Loans | 3.95 |
| Co-operative Bank - Owner Occ | 4.99 |
| Co-operative Bank - Standard | 4.99 |
| Heartland Bank - Online | 5.30 |
| ICBC | 5.39 |
| Kiwibank - Offset | 5.65 |
| Kiwibank | 5.75 |
| Unity Standard | 5.79 |
