I wasn't sure whether the property would be my primary or an investment when I signed the purchase contract although it states it was to be my primary resd. (new construcution home and had time to decide occupancy and whether to sell my current primary if I wanted to). The property was finished sooner than expected and I no longer qualified to own both and was denied by the mortgage lender but was unable to get my earnest back from the builder. It is a huge loss...can I deduct this?
2007-02-10 06:44:39 · 3 answers · asked by McCaff 1 in Business & Finance ➔ Taxes ➔ United States
Earnest money is not considered a deductible expense, It is not Mortgage interest,nor points paid.
Publication 530
2007-02-10 06:52:52 · answer #1 · answered by Anonymous · 1⤊ 0⤋
No, that is not deductible. But why would you ever enter into an agreement that didn't have a mortgage escape clause?
2007-02-10 14:48:59 · answer #2 · answered by Bostonian In MO 7 · 2⤊ 1⤋
I would assume so. It is listed under deductions, property. Earnest money is a write off along with all first year interest.
2007-02-10 14:49:02 · answer #3 · answered by foison_ball 1 · 0⤊ 5⤋