Can I deduct this?

We were building an investment property but our financial situation changed. We were forced to break the contract and we lost our $10K deposit. Would this be deductible on our federal taxes? We have other capital gains from real estate that could offset the loss.

There are way too many potential issues here to give you a cut and dried answer. I'd strongly urge a consultation with a CPA or tax attorney.

TFTP Report It

Tex,

My honest opinion...

With 10K in the balance between an acceptable tax bill and a HUGE one, I say it's time to spend a couple hundred and see a qualified tax professional or better yet, a CPA...

Tags

　　Earn Money 　　Direct Investment 　　Debt Financing 　　Capital Investment 　　Business Investment 　　Business financing 　　Business Invest 　　Business Debt

Related information

Help please, i'm so confused?

Trying to get someone to do your homework for you? You really need to crack the books and work this problem out for yourself. It isn't difficult, but why go to school if you're going to t...

Is selling stradle option on SPDR exchange traded fund(SPY) a good strategy?

Sounds to me like you are a little more advanced than the teenagers on this site! I can not give you advice ... can you give me some? Why not stocks? I am into [GW] Grey Wolf and [GE] General Elec...

A question on WACC?

Now I remember why I gave up accountancy just after qualifying in 1974. I beleive you could do a lot worse than purchase a copy of "Financial Modeling using Excel and VBA. (www.amazon.co.uk...

Whole life vs. term--can you prove higher return with whole life?

Whole life: A client of mine owned it since 1978. It is now 2006 and there's only 20,000 in the cash value. The client is now 58 years old and going to retire soon. Do you think $20,000 is eno...

What are the current 2007 tax rates on someone in the "highest bracket"?

The maximum Federal rate is 35%. Each state that taxes investment income has their own rules so you'd have to consult the appropriate state revenue or tax department website for that. The ...

Mutual funds performing poorly?

They look ok, but not the best. You can to to morningstar.com to see how they rank vs. other funds. To be honest though, mutual funds are appropriate for some and the wrong investment for a i...

If a company has a history of declining income should I invest?

Hahaha! NO! First off, never invest in any IPO company. For every stock that made it, 1000 of them are trading OTC for .000001 cents. If there were audited financial statements for the past 5 y...

Questions about Warren Buffet's Theory?

Re: 1. I wouldn't think so - in fact, I'm pretty sure he has come out strongly against it. Re: 2. Buffett does buy many stocks that pay dividends, and he does sell stocks from time to ti...