Discussion:Builder Default
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Discussion Forum Index --> Advanced Tax Questions --> Builder Default
Discussion Forum Index --> Tax Questions --> Builder Default
| 12 January 2008 | |
| TP contracted with builder to purchase an investment condo. Downpayment was $100,000 and contractor had 24 months to complete project. Contract allowed developer to use 50% of the deposit money with the balance to be held in escrow. Project stalled and TP asked for return of deposit. Developer agreed to return the escrow portion $50000, the balance having allegedly been spent.
I don't consider this a bad debt situation, but a loss on investment real estate. Can we show a purchase price of 100K and a selling price of 50K resulting in a 50K LT loss > | |
Bottom Line (talk|edits) said: | 12 January 2008 |
| There've been a couple of threads on this. I can't figure out how to link them but go to the yellow box on the left, type in "construction defaults". | |
Death&Taxes (talk|edits) said: | 12 January 2008 |
| BL: type Discussion: xxxxxxxxx I usually paste the title of the discussion where the xxxxxxs are.
You could check out Riley's answer here in a slightly different situation for some clue: Discussion: Casualty Loss-Construction Defect? Or I would use the phrase 'lost deposit' or lost earnest money. I hear Kevin screaming now! | |
Bottom Line (talk|edits) said: | 12 January 2008 |
| Thanks D&T | |
Death&Taxes (talk|edits) said: | 12 January 2008 |
| You have to surround the whole thing with [[ ]] | |
| 13 January 2008 | |
| Sounds like a loss under Sec. 165, instead of a 166 loss (bad debt). | |
| January 13, 2008 | |
| BL, you also need to put the whole thing in quotes, and I think there's no space after the colon. | |
Bottom Line (talk|edits) said: | 13 January 2008 |
| Wow. Sounds complicated. | |
| 13 January 2008 | |
| Bottom line, go to the prior discussion that you want to link to, highlight the title with your left mouse button and mousing over it, then right mouse COPY, then go back to the thread you wish to post the link to, then left mouse PASTE, then highlight/mouse over the title DISCUSSION:XXXX then hit the tool Ab (which is underlined). This puts the brackets around it. Very easy once you get the hang of it. | |
| 13 January 2008 | |
| Yes, David, I am screaming. But I am in the woods and no one is here to hear me. | |
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