k371
New Member

I lost earnest money deposit on a home purchase and seems that is a Schedule D loss IF THE HOME WAS FOR RENTAL. Do I need to prove it was for rental?

From previous answers to similar questions, it seems that it could be a Schedule D loss for acquiring a new venture that turned out to be not viable. Also, if we do deduct it, will the entire loss be deductible from other income (my other income is W2 wages income) or only 3000, the passive loss limit?