674135
I lost my earnest money deposit when a non-residential rental property deal fell through. I'm a real estate professional and this was part of my normal course of business. I walked away after issues came up in due diligence. Per the contract, the seller kept the earnest money deposit ($10,000) as liquidated damages. I cannot figure out how to report this.
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If you're buying business property and you forfeit your earnest deposit, you can write that off as a capital loss, provided the property is all business.
http://smallbusiness.chron.com/tax-deduction-related-forfeited-earnest-money-76488.html
If you're buying business property and you forfeit your earnest deposit, you can write that off as a capital loss, provided the property is all business.
http://smallbusiness.chron.com/tax-deduction-related-forfeited-earnest-money-76488.html
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