MargaretMort Posted April 8, 2011 Report Share Posted April 8, 2011 Are late fees deductible? Client buys equipment, financed by a loan agency. Late payment equal additional fee. Interest is deductible, of course, but can't find anything about late fees. Thanks. MM Quote Link to comment Share on other sites More sharing options...
michaelmars Posted April 8, 2011 Report Share Posted April 8, 2011 YES Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted April 8, 2011 Report Share Posted April 8, 2011 Yes, because the 'late fee' is basically just extra interest charged for the delay in receiving the payment. If you owe me money, and the regular interest on the debt is $.50 a day, and you are ten days late paying me, and I charge you an extra $5 'late fee' haven't I just kept myself even? Quote Link to comment Share on other sites More sharing options...
MargaretMort Posted April 8, 2011 Author Report Share Posted April 8, 2011 I thought so but couldn't find anything that referred to it except for late fees for mortgage payments. thank you very much. MM Quote Link to comment Share on other sites More sharing options...
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