Home Buying in 10005>Question Details

Shrey, Home Buyer in New York, NY

Walked away from my purchase contract and lost the downpayment money. Can I write that loss off?

Asked by Shrey, New York, NY Sat Feb 28, 2009

Due to market conditions I walked away from my purchase contract and suffered the loss of deposit. Can I write that loss off as a capital loss in my taxes - since it is essentially an investment loss for me? I cannot seem to get a definite answer. Please advise, somebody.

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Answers

5
My opinion.

if you were buying in a corporation then you would have a loss but if your buying personally i just dont think would be able to take the deduction.

My suggestion would be to buy turbo tax and / or goto forums and see what other people are asking, as im sure this is a common question. Also you can search through he program for that type of deduction. if its there, take it as turbo tax will pay for the difference for you if they are wrong.
Web Reference: http://uvpinc.net
0 votes Thank Flag Link Mon Mar 2, 2009
OP here. Thank you for all your responses. I do not have an accountant (never used one). Hence the question here to all you wise men. I will keep on searching.

Thank you again.
0 votes Thank Flag Link Sun Mar 1, 2009
Shrey,

DITTO.......

Your CPA or tax specialist would be the best source for this information.

Good luck
0 votes Thank Flag Link Sun Mar 1, 2009
With the current market conditions, that's a question I would like the answer to also. When you get an answer from your accountant, would you please post it. Thanks.
0 votes Thank Flag Link Sun Mar 1, 2009
Your accountant would be better to proide you with the appropriate answer... Realtors are not permitted to give answers to question that are not within thier field of expertiese....

Given that, I will contact my accountant and tell you what he thinks next week.

Good luck..

Douglas Montgomery, Broker
HomeNY Corp.
0 votes Thank Flag Link Sat Feb 28, 2009
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