I had a contract on a new house being built and had a 25000 down nonrefundable down payment. Before we could close my company transfered me and I had to eat the loss. The company did not reimburse me for the loss though I will make up for it in salary next year.
Is this loss deductible?
No.
-Mark Bole
snipped-for-privacy@gmail.com (tmoody1) posted:
In a word, no.
But that doesn't mean people in your situation are always doomed to lose everything. For example, one possible way to ameliorate your loss, would be to find a homebuyer who would be willing to "purchase" your position with regard to the new house. Obviously, if they wanted the house as you planned it, they might be willing to pay you some percentage of your investment.
The builder would, of course, have to accept the transfer of ownership (and may not do so, depending on the exact terms of your purchase agreement).
In any event, the time for such action appears to be past, from what you've written. Also, current housing market conditions are not conducive to such a solution.
Bill
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