Can I deduct this?

2 ⤊

We were building an investment property but our financial situation changed. We were forced to break the contract and we lost our $10K deposit. Would this be deductible on our federal taxes? We have other capital gains from real estate that could offset the loss.

2007-02-07 03:18:11 · 2 answers · asked by Tex 2 in Business & Finance ➔ Taxes ➔ United States

2 answers

There are way too many potential issues here to give you a cut and dried answer. I'd strongly urge a consultation with a CPA or tax attorney.

2007-02-07 03:26:36 · answer #1 · answered by Bostonian In MO 7 · 1⤊ 0⤋

Tex,

My honest opinion...

With 10K in the balance between an acceptable tax bill and a HUGE one, I say it's time to spend a couple hundred and see a qualified tax professional or better yet, a CPA...

2007-02-07 03:22:33 · answer #2 · answered by Wolfsburgh 6 · 1⤊ 0⤋