Cody2
New Member

Can I report a lost real estate purchase deposit as a loss on my taxes?

I was going to purchase a new home from a builder. They required a deposit from me to start the design and building process. During the design process the cost of the home increased to the point where I could no longer afford to purchase the home... and I lost my deposit. Is there any way I can report this lost deposit as a loss on my taxes? The deposit amount was $25,000.