I backed out of a home sale contract and had to pay around $8,000 to get out of the contract to the seller, attorney, and realtor. Can I deduct any of that?

[kimmie11985]

We paid $1000 in earnest to the seller, $3500 in damages (rent they could have collected), $1200 in attorney fees for prepping closing documents but not closing, $1500 to the realtor for commission he would have earned, $475 in appraissal fees, and $375 in inspection fees.  Can any of this be deducted?

[Patrice · Accepted solution]

No, the expenses of canceling a home purchase are not tax-deductible.