I lost 10 grand of escrow funds due to cancelling a home purchase contract. Can I claim on income tax, HELP?!!

Contract was contingent on the sale of other property I owned in another state. The property did not sell, however, the title company(escrow?) and the home owners had me sign papers releasing $10,000.00 of the escrow funds to the owners of the home that I did not purchase. The clause regarding the sell of my other property was in the contract and was required for the purchase of the home to take place. Unfortunately, under much distress and also being bipolar, this situation caused me much stress, confusion, humiliation and the list goes on. I signed, but later realized I had been taken advantage of. I reported this to the Florida Department Of Business & Professional Regulations in February, 2007. I have called the department multiple times for the status of my case with no results.
I can not afford a lawyer & am worried that my bipolar condition will hinder my case. I just need advice as to how I can recover as much of my loss as I can. I am a single Mom, nurse and now am disabled.

If you can prove your bipolar condition, that may be enough to prove you were not of sound mind.

I agree with the post that you should talk to an attorney immediately.

IRS
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Toll-Free, 1-800-829-1040
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Your best bet is to call the IRS or H & R Block...

http://www.hrblock.com/index.html?otpPar...

I'm not thinking though that a loss on a purchase is deductable. That was an error on your part... It is not points or interest. It is not a loss on the sell of YOUR home.
Good Luck

HIRE a competant tax preparer... they will know... because you have a TAX problem not a civil tort problem and it's your own fault you didn't have a lawyer, so save the "I have bipolar" nonsense... that doesn't matter when it comes to real estate sales.

GET A LAWYER