Lost Earnest Money - Posted by Mike Perkins

Posted by Mike P on March 12, 2002 at 21:32:21:

I never asked the preparer directly “why not”? I can only think it was because of not enough practice with REI taxes. It’s Greek to me. I now have my returns back though with my deduction amount entered as a capitol gains loss and it is listed as “deposits on rental” on schedule D in the description of property column (1a). Now I wonder if this is accurate enough or will this “flag” my return? I am pleased the amount is finally included at least.

Lost Earnest Money - Posted by Mike Perkins

Posted by Mike Perkins on February 22, 2002 at 22:21:18:

My first lessons in real estate investing have been costly.
I was not able to get financing for a property and thus relinquished the earnest money. At this point is there a way to claim this as a business loss on my taxes? This was to be my first rental property, I own no others nor have I advertised that I was entering this business. I was (and still am) a member of a local real estate investors group at the time of the deal. I’m just not comfortable with the words of my tax preparer that I have to write it off as a poor choice. I am still in the hunt for my first property.
Thank you

Re: Lost Earnest Money - Posted by JHyre in Ohio

Posted by JHyre in Ohio on February 25, 2002 at 06:25:10:

You seem to be “in business” and should be able to write off the loss…what’s your preparer’s reason for saying that you cannot do that?

John Hyre