How can I claim/deduct losses due to builder defaulted on home construction? Had to pay over $7K on unused approved loan. Plus loss additional $10K trying to settle.

Forum|Forum|7 years ago
June 1, 2019
1 reply
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How can I claim/deduct losses due to builder defaulted on home construction? Fired builder after 6 months (not even land cleared). Had approved loan, but had to pay over $7K closing cost on unused loan - could not be transferred to another builder. Plus loss additional $11K+ to settle out of court. Lost more than $19K not including my travel from TX to SC.

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Best answer by LJane29

If this was for a business/rental property you can claim the loss but it may be limited (falls under the casualty loss). If this is personal then there is no deduction, it is a personal loss.

LJane29Answer

Level 6

If this was for a business/rental property you can claim the loss but it may be limited (falls under the casualty loss). If this is personal then there is no deduction, it is a personal loss.

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