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Old 03-14-2014, 01:30 PM
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Question regarding mortgage deposit

To anyone who can help....

I am in the midst of buying a new home that was being built and was given a good offer very early in the building stages by a mortgage company that capped my interest rate for 1 year. The deal seemed good at the time and I took it giving a 1% deposit which I would lose if I decided to not close with them.

Well, I then got a better deal at closing from another company and had to ditch the last mortgage company/deal and the 1%.

What I was wondering about, is that lost 1% tax deductible? Doesn't it count as a "loss"

Any help appreciated.



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Old 03-15-2014, 01:25 AM
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Join Date: Oct 2010
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Quote:
Originally Posted by Superk0725 View Post
To anyone who can help....

I am in the midst of buying a new home that was being built and was given a good offer very early in the building stages by a mortgage company that capped my interest rate for 1 year. The deal seemed good at the time and I took it giving a 1% deposit which I would lose if I decided to not close with them.

Well, I then got a better deal at closing from another company and had to ditch the last mortgage company/deal and the 1%.

What I was wondering about, is that lost 1% tax deductible? Doesn't it count as a "loss"

Any help appreciated.
I do not think so; You can’t claim a casualty/theft loss as a short-term capital loss as the contract was breached by you,a breaching party; A breach of contract occurs when either party fails to perform according to the contract's terms. While every state's laws are different, the victim of a breach of contract generally can recover damages if she can prove that a contract existed, the opposing party breached the contract, and the breach caused her harm



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