I'm Anne. I've been preparing taxes for 27 years and I have a different answer for you.
The earnest money that you put down on a home is generally NOT refundable. This money is used towards closing costs, and becomes part of the cost basis in your home.
If the deal falls through, you might receive a small portion of the earnest money back, but most of it remains in escrow, until you find another home. Please see below for more in depth information.
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