Can a Loss of Earnest Money to a Tax Write Off?
August 18th, 2009 by Unregistered User
Home prices dropped and my daughter took advantage of the low price of a condo before it was built. Now that the condo is almost finished, she finds herself needing to move. Even though the price was low, now she cannot afford it. My daughter is moving and will not close on a new condo she bought pre-construction. She put earnest money on the contract and now she will lose her earnest money. Can she write off her loss? She was going to use the condo for personal use. Thanks for your help.
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Per IRS publication 530 – you can not deduct the earnest money that was lost due to lack of closing on the property.
What if it was for investment?