View all Local Real Estate forums. Recently my all cash offer on one of the forclosed property got accepted. Bank gave me just 3 days to get property inspected. I tried to negotiate but they did not accept my request to increase the inspection window. Due to personal issues I could not get property ispected.

The Tax Deduction Related to Forfeited Earnest Money | fuwababe.web.fc2.com

And Igot property inspected 10 days after the offer got accepted. I have 3 other rental properties, So at the time of filing taxes can I deduct this lost earnest money as a business loss? If Yes, Under which category? Also, I have been driving around looking at various properties. Can I claim all the mileage unser my rental business?

Can we write off a lost good faith down payment after backing out of a home purchase? - Nerdwallet

Yes, you can write off the loss of the earnest money. You can also write off the mileage. Your CPA will know how to do this for you. I think you should be able to write off your earnest money loss and mileage. You should consult your CPA to confirm.

I'm not a CPA, but I discussed expenses related to property acquisition with ours and he said up until you own the property, your expenses basically go on your Schedule A under "investment expenses", then after you own the property, they go on your Schedule E.

I had a similar situation on a house where an offer was accepted but then I didn't actually close. I did have some expenses. My CPA wrote it up as a separate property on my taxes.

Jon Holdman, Flying Phoenix LLC. Already have an account? If you signed up for BiggerPockets via Facebook, you can log in with just one click! Log in with Facebook. Full Name Use your real name. Password Use at least 8 characters. Using a phrase of random words like: Use your real name.

Make it at least 8 characters. Create a new account instead. An email has been sent with a confirmation link. That link will get you back here to reply. We look forward to your post. Log In Email Address: Share on Facebook Share on Twitter Share on LinkedIn 1 of 1 pages. Joe M posted over 5 years ago. I am going to lose 1K earnest money.

All the properties are under my name with 2M umbrella. Thanks for your help. Curt Davis Residential Real Estate Agent and Turnkey Provider from Memphis, Tennessee replied over 5 years ago.

So you did the inspection 10 days later and found issues with the property? Mitch Kronowit SFR Investor from Orange County, California replied over 5 years ago.

Tracey Williams Investor from Columbus , Ohio replied over 5 years ago. Jon Holdman Investor from Wheat Ridge, Colorado replied over 5 years ago Moderator. Trending Discussions Failure to launch, no luck so far Replies. Log in Sign up. Log in Email Password Forgot password?

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