Legal expenses re lease

Legal expenses re lease

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Are legal expenses paid regarding an unsuccessful lease renewal allowable?
Neil

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By AnonymousUser
29th Jun 2007 20:48

Thats right
but Yasir who does like to pay lease expenses when having no intention of getting into a contract :)....

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By User deleted
28th Jun 2007 16:46

Yes
One hundred percent, as long as the expenses were incurred with the intention of entering in an agreement wholly, exclusively, and necessarily for the business.

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By User deleted
30th Jul 2007 11:30

Whoa up
A bit too quick off the mark here. A good general principle with abortive expenditure is to ask oneself whether, if it was not, a tax deduction is competent as a revenue expense.
The lease in the hands of a lessee is a capital asset and the legal outlay here would not be allowable. On the other hand, a lessor , having a rental business , should be able to claim the expense if linked to a short lease.

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