Q: Can you deduct both an "early termination fee" and a "contract break cost" charged when paying off a car loan used mainly for work purposes claimed under a logbook method of 90% work use?
A: Yes, you can deduct these expenses under section 8-1. Since the car is used for work (and the loan interest for buying it is already tax deductible for work use), any payment to end the loan early is also deductible for work use.
If you have any questions, feel free to contact Tax Ideas Accountants & Advisers. You can also book an appointment through our live calendar.
