If you loose your deposit on a new house purchase due to not being able to sell your current house. Can the loss be tax deductible ?

Asked by Pholt48, Meriden, CT Wed Jul 3, 2013

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Kawain Payne, Agent, Seal Beach, CA
Wed Jul 3, 2013
If you fail to perform as a buyer for any reason you can loose your deposit

Did you stipulate in your purchase agreement that the purchase was contingent on you selling your home?

As for a tax deduction, I do not think you will be able to deduct the lost deposit.
Double check with a tax professional to make sure.

I hope all works out for you, sounds like this is a tough situation to be in. Maybe your home is priced too high. Maybe a price adjustment or some buyer incentives may boost the chance of you getting it sold.

Best of luck to you!
Kawain Payne, Realtor
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Walter 'Skip'…, Agent, Brea, CA
Wed Jul 3, 2013
I don't believe so but it is best to contact a tax professional.
Good luck,
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