Lost earnest money
Varies
Can You Write Off Lost Earnest Money?
Short answer: No: losing an earnest money deposit on a personal home purchase is a nondeductible personal loss.
For an investment property it's a capital loss.
Records to keep: Keep receipts, statements (1098, 1098-T, 1099, W-2G), and a note of what each cost was for. Compare itemizing to the 2026 standard deduction before you claim.
BW-B23-00467
high risk
Lost earnest money
Varies
Individuals / Personal Taxes
Other Expenses
Personal Tax Deductions
No: losing an earnest money deposit on a personal home purchase is a nondeductible personal loss.
BizWriteOffs provides educational information only and is not tax, legal, or accounting advice. Deductibility depends on your specific facts and records. Consult a qualified tax professional.
Business justification
No: losing an earnest money deposit on a personal home purchase is a nondeductible personal loss. For an investment property it's a capital loss.
Category
- Personal Tax Deductions
personal deduction
search demand 2026 b23
home mortgage
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