Claim loss on international investment property

[fakhir]

Hi, I booked a condo outside of united states, which is being demolished by the government because of some corruption. It had proper permits and was constructed by a reputable builder. But, the local government changed, and now they found some corruption issues. I already have paid around 30K dollars, am wondering whether I can claim as a capital loss on my tax return. What documents would I need to prove the loss.

Thanks.

[ColeenD3]

If it were personal property, then no. If investment, then yes.

A loss on the sale or exchange of personal use property, including a capital loss on the sale of your home used by you as your personal residence at the time of sale, isn't deductible. Only losses associated with property used in a trade or business and investment property (for example, stocks) are deductible.   LOSS

In addition to the link above, please see this LINK and its additional references.