DVG1129 <dvg1129[at]hotmail.com> wrote:

- quote -

True, provided this was not for your own personal use.

So if the IRS should come back and say: Prove this was only
for investment purposes and not for your personal use, how
do you prove that?

--

ArtKamlet at a o l dot c o m Columbus OH K2PZH

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I put a 10% downpayment on a condo (pre-construction) I was
purchasing for speculation purposes in Florida. When the
construction of the condo was completed, prices of the
similar units in the complex (still to be built) were down
about $90k, so i decided not to close and they kept my
downpayment. My question is related to capital losses.
Would i be able to deduct this as a capital loss for tax
purposes? I am assuming it will be a long term loss,
because the date i made the downpayment and the day the
money was foreited by not closing were a little over a year
apart. Can anyone clarify this for me?

Thanks,
Dave

<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ------------------------------------------------------- >