Lost deposit on condo - how to claim loss on Taxes

General Real Estate Investing
1

Hi,

I put in a deposit to purchase a condo (pre-construction), but then I lost it since I did not act fast enough to sign the papers once the condo went to contract.

How do I claim this loss on the tax forms (where??).

thanks

2

Did you really lose it, or is it still refundable. In my area, reservation deposits are fully refundable until you have the property under a ‘hard’ contract.

I wonder if all you lost was your reservation on the property. Did you ask the builder to refund your reservation deposit?

3

It is a real loss. The contract was specific that within a certain amount of time the deposit would be lost.

Back to the original question – how and what do I claim for taxes?

thanks…pps

4

But, you said you did not sign the contract because you did not act fast enough.

Investment losses are claimed on Schedule D.

5

Yes, I wasn’t clear.

Contract was:put $X as an option to purchase. If didn’t respond within 10 days of when another contract to purchase was available (this is the real contract), then you lose your $X.

pps