We put down a deposit to rent a house, but backed out at the last minute due to some discrepancies in the contract. Is there anyway to claim this as a loss?
Rather than going to court, we lost our deposit and walked. Come to find out later, that the agent and homeowner are relatives.
01683
1 Best answer
TomD8
Level 15
Jun 4, 2019 5:41:19 PM
Sorry, the IRS specifically prohibits the deduction of forfeited down payments, deposits, or earnest money.
1 Replies
TomD8
Level 15
Jun 4, 2019 5:41:19 PM
Sorry, the IRS specifically prohibits the deduction of forfeited down payments, deposits, or earnest money.