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Lost money on house, deduction or not?

Sent to Tax Experts February 26 12:09 AM

A friends parents were going to buy a house. They put down $25,000 as a contract fee. The sale of the house did not go through, and in turn, they lost the $25,000 because of the termination of the contract. Is this 25K deductible somehow as a loss?

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Alexandria, Virginia

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February 26 10:05 AM (9 hours and 55 minutes and 19 seconds later)
         
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