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?

[ripitup5461]

Rather than going to court, we lost our deposit and walked.  Come to find out later, that the agent and homeowner are relatives.

[TomD8 · Accepted solution]

Sorry, the IRS specifically prohibits the deduction of forfeited down payments, deposits, or earnest money.