Can I report a lost real estate purchase deposit as a loss on my taxes?

[Cody2]

I was going to purchase a new home from a builder. They required a deposit from me to start the design and building process. During the design process the cost of the home increased to the point where I could no longer afford to purchase the home... and I lost my deposit. Is there any way I can report this lost deposit as a loss on my taxes? The deposit amount was $25,000.

[jerry2000]

Sorry, no. That is not a deductible expense.

[brucemoeller]

Jerry, if this new home was going to be a rental property, would your answer change? (also, expense isn't the proper term. It was a loss.  

[SweetieJean]

Putting down earnest money on a personal home doesn't give you a deduction, but business properties work differently. 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. Trying to buy a rental house that's also going to double as your vacation home doesn't justify claiming the deposit as a write-off. The same rules apply to writing off a capital loss on business real estate as they do for deducting lost earnest money on buying a business.
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[TomD8]

More detail here:  <a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/2926560">https://ttlc.intuit.com/questions/2926560</a>