I encountered a similar situation, involving square footage discrepancies, though my lawsuit is still ongoing. Apart from the earnest money and legal expenses, I also incurred costs for engineering services to accurately measure the square footage. I have a few questions:
What documentation do I need to demonstrate that the property I plan to purchase is intended for investment purposes if I don't have an LLC?
Assuming I might forfeit the earnest money, can I deduct the legal and engineering expenses?
If some of these expenses are deductible, should I deduct them in the year they were incurred or wait until the lawsuit is settled?
Thank you so much!
