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Subject Author Date
Can this be claimed as a loss? John Smith 07-14-2008
Posted by John Smith on July 14, 2008, 5:21 pm
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 I signed an contract to purchase a condo as a rental unit. Due to
financial difficulty, I was not able to close it and lost the down payment.

Can the lost down payment be claimed as a loss? On what form or
schedule? Thanks.

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Posted by Dick Adams on July 14, 2008, 8:58 pm
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> I signed an contract to purchase a condo as a rental unit.
> Due to financial difficulty, I was not able to close it
> and lost the down payment.
>
> Can the lost down payment be claimed as a loss? On what
> form or schedule? Thanks.

Unfortunately this is a personal loss and personal losses
are not deductible.

Dick

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<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
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Posted by Alan on July 15, 2008, 12:48 am
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Dick Adams wrote:
>
>> I signed an contract to purchase a condo as a rental unit.
>> Due to financial difficulty, I was not able to close it
>> and lost the down payment.
>>
>> Can the lost down payment be claimed as a loss? On what
>> form or schedule? Thanks.
>
> Unfortunately this is a personal loss and personal losses
> are not deductible.
>
> Dick
>
Technically, your conclusion on deductibility is correct but the
reason is not. Certain personal losses are deductible (see
casualties and thefts). This loss is not deductible because it is
not a loss on investment property but rather a loss on
"personal-use" property.

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by Bill Brown on July 15, 2008, 6:36 am
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> Dick Adams wrote:
>
> >> I signed an contract to purchase a condo as a rental unit.
>
> > Unfortunately this is a personal loss and personal losses
> > are not deductible.
>
>
> Technically, your conclusion on deductibility is correct but the
> reason is not. Certain personal losses are deductible (see
> casualties and thefts). This loss is not deductible because it is
> not a loss on investment property but rather a loss on
> "personal-use" property.

Since when is rental property "personal-use" property?

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by Alan on July 15, 2008, 10:07 am
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Bill Brown wrote:
>> Dick Adams wrote:
>>>> I signed an contract to purchase a condo as a rental unit.
>>> Unfortunately this is a personal loss and personal losses
>>> are not deductible.
>>
>> Technically, your conclusion on deductibility is correct but the
>> reason is not. Certain personal losses are deductible (see
>> casualties and thefts). This loss is not deductible because it is
>> not a loss on investment property but rather a loss on
>> "personal-use" property.
>
> Since when is rental property "personal-use" property?
>
I concentrated so hard on Dick's response, that I missed the fact
it was rental property. That makes the loss deductible.

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

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