can I deduct the deposit I made on house purchase if house goes into foreclosure?

Asked by Nl208, San Bernardino, CA Thu Feb 11, 2010

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Bob Movin-On, , Hartford, CT
Fri Feb 12, 2010
No your deposit is not deductible.
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Emily Knell, Agent, Huntington Beach, CA
Thu Feb 11, 2010
You CAN likely deduct what you may have paid in closing costs, but check with your CPA, I don't think you can deduct / write off your actual down payment.
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David Gorham, Other Pro, New Jersey, NJ
Thu Feb 11, 2010
Most likely not. You need to consult with a tax advisor or CPA. The good news is that if the house does get foreclosed on the defalted amount will not be charged back to you as income. Mortgage Tax Reform until 2012, I believe.
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