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April 5, 2025
Question

Loss of Down Payment on New House

  • April 5, 2025
  • 1 reply
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I payed $17000 to begin construction on a new house.  I was unable to complete the project due to the inability to sell my existing house.  The construction company kept the down payment.  How do I cover the loss.

1 reply

April 5, 2025

If the property was intended to be your personal residence, unfortunately this is a personal loss and is not deductible. 

April 6, 2025

Thank you Mindy ... This may be a reach:  I gambled that my existing house would sell in time to cover the contract on the new house.  I lost because my current house failed to sell.  I lost the gamble.  Thus, I lost my wager.  Is my logic flawed?  ... DR

fanfare
Employee
April 6, 2025

you can't deduct gambling losses either.