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Richard, Tax Attorney
Category: Tax
Satisfied Customers: 55608
Experience:  29 years of experience as a tax, real estate, and business attorney.
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I put down a non refundable deposit to buy a business and have

Customer Question

I put down a non refundable deposit to buy a business and have the receipt, however the sale did not go thru and i didnt not acquire the business, how do i report the loss, if i don't own a business?
Submitted: 1 year ago.
Category: Tax
Expert:  Richard replied 1 year ago.
Good morning. My name is ***** ***** I look forward to helping you. Since this was a deposit to purchase a business, you can take this as a deduction as long as you itemize deductions on Schedule A of your Form 1040. You would enter this as an investment expense on Schedule A, line 22. Your deduction is limited, however, in that you can only deduct the part of these expenses that exceeds 2% of the amount on Form 1040, line 38 - adjusted gross income. Thank you so much for allowing me to help you with your questions. I have done my best to provide information which fully addresses your question. If you have any follow up questions, please ask! If I have fully answered your question(s) to your satisfaction, I would appreciate you rating my service as OK, Good or Excellent (hopefully Good or Excellent). Otherwise, I receive no credit for assisting you today. I thank you in advance for taking the time to provide me a positive rating!