Can I claim a loss on my taxes (federal or state) on a Real Estate Condo deal gone bad?

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Can I claim a loss on my taxes (federal or state) on a Real Estate Condo deal gone bad?

I put down 10k on a new construction condo. Before we could close the place flooded and we decided to back out. The builder would only give us back 5k or half the deposit. Is there any way to claim the other 5k I lost when I do my taxes?

2007-02-09 07:58:48 · 2 answers · asked by draz91 2 in Business & Finance ➔ Taxes ➔ United States

2 answers

It all depends whether the condo was INTENDED to be a personal residence or an investment. Personal loss on residence = not deductible. Loss on business investment = deductible.

Tax Advisor

2007-02-09 08:22:28 · answer #1 · answered by WealthBuilder 4 · 0⤊ 0⤋

Not on federal, or in my state (PA). Since state laws vary, you could check in your state, but I'd be surprised if you could.

2007-02-09 08:04:37 · answer #2 · answered by Judy 7 · 0⤊ 0⤋