I actively look for properties to buy and this ear I found one, made an offer w/earnest money deposit, paid for appraisal, inspections etc. But deal fell through due to unexpected flood insurance issues. My questions are:
-Can I write-off earnest money deposit loss, appraisal fee, inspections associate with this deal which unfortunately did not materialize.
I appreciate your feedback and if you could include some tax/IRS references it would help grately.
Thanks.
2006-12-27 02:32:55 · 2 answers · asked by insurancelawcase 1 in Business & Finance ➔ Taxes ➔ United States
It was an INCOME propery
2006-12-27 02:38:22 · update #1
Good starting reference is to obtain a Publication 17 from the IRS. You can call their order line or go to IRS/GOV and use forms and publications. If buying/selling properties is a business for you then all expenses related thereto should be deductible. Travel, lodging, meals, phone, legal, yaddah. If you lost money at it then welcome to the real world.
2006-12-27 02:40:09 · answer #1 · answered by acmeraven 7 · 0⤊ 0⤋
You really need to talk to your tax advisor. It is going to make a difference whether you wanted investment, residential or second home.
2006-12-27 02:36:42 · answer #2 · answered by Anonymous · 0⤊ 0⤋