Hello,
I lost an earnest money deposit (EMD) in a failed real estate transaction. I was trying to buy an investment property (rental house with tenants in it), which I was going to continue to operate as a rental property. I also spent $ on an appraisal and house inspection.
From what I read, the loss of the EMD is a capital loss and can be claimed in Schedule D. However, I don't see where I can enter this loss in Schedule D.
1. Can someone guide me through the steps for claiming the loss of my EMD as a deduction?
2. Where in Turbo Tax can I deduct the expense for the appraisal and house inspection?
Thank you
