I paid earnest $$ for a home (residence), but the deal fell through with no earnest return. Tax deductible?

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I paid earnest $$ for a home (residence), but the deal fell through with no earnest return. Tax deductible?

2007-02-25 08:00:02 · 4 answers · asked by Erika L 1 in Business & Finance ➔ Taxes ➔ United States

4 answers

No, sorry, there is no deduction for earnest money -- whether the deal goes through or not. If the deal closes, the earnest money is just part of the "buyer's funds" in the deal. There is no specific deduction for it. If the deal falls through, it's just a personal expense and is not deductible.

2007-02-25 08:10:44 · answer #1 · answered by Bostonian In MO 7 · 3⤊ 0⤋

No because the deal fell through

2007-02-25 08:06:32 · answer #2 · answered by Akbar B 6 · 1⤊ 3⤋

No, sorry, it's not deductible.

2007-02-25 08:47:32 · answer #3 · answered by Judy 7 · 0⤊ 0⤋

sorry, no.

2007-02-25 08:18:41 · answer #4 · answered by Dizney 5 · 0⤊ 1⤋