We initially booked a home and paid deposit of 3000$ for options, but later on backed out. The builder told us that they are not able to sell the home for a price so as to recover our deposit, hence we had to lose that amount.
Is there a provision to in taxes to report this loss and claim deduction?
Thanks.
2007-03-27 12:29:40 · 4 answers · asked by hskulkarnius 2 in Business & Finance ➔ Taxes ➔ United States
No, you can't take a loss on the sale of a personal residence, and you also can't take a loss on a loss of a deposit if you backed out of purchasing the house.
2007-03-27 12:38:06 · answer #1 · answered by Anonymous · 1⤊ 0⤋
Realtors are frequently clueless re tax rules, and frequently provide undesirable tax suggestion. they may be suited on the escrow section however, in view that what you paid into escrow does not count number, that is what replaced into paid OUT of escrow for belongings taxes. The assertion out of your lender exhibits what if something you could declare for 2009 for mortage activity and genuine belongings taxes. you could likely additionally declare the factors - those will instruct on your last assertion. if your finished itemized deductions alongside with the homestead-appropriate ones yet in addition issues like state and local taxes, and contributions, provides as much as over the quantity of your widely used deduction ($5700 if single, $11,4 hundred if a joint return) then that is properly worth it to itemize.
2016-10-20 13:42:02 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Nope, it's you own responsibility, not the government's or the other taxpayers.
2007-03-27 12:55:25 · answer #3 · answered by Judy 7 · 1⤊ 0⤋
No, sorry, that's not deductible.
2007-03-27 12:48:52 · answer #4 · answered by Bostonian In MO 7 · 1⤊ 0⤋