Can I show loss of money with a cabin builder, as a capital loss or as a deduction after we decided we did not want the cabin?

we started the process to have a cabin built and signed the contract with the understanding if we changed our minds or could not find a suitable parcel, then we could cancel it, with a loss of only $3500. In the event, we lost $10,000 and could not get it back. Can we declare this as a capital loss, or as a deduction?

posted

Probably not. Unless what you were doing was an investment or a business venture (e.g. a rental property), and you can show you had the intent of making money, then it was a personal item and you cannot take a loss on it.