Can you write-off cost of looking for property, loss of earnest money, appraisal?

Q. I actively look for properties to buy and this ear I found one, made an offer w/earnest money deposit, paid for appraisal, inspections etc. But deal fell through due to unexpected flood insurance issues. My questions are:

-Can I write-off earnest money deposit loss, appraisal fee, inspections associate with this deal which unfortunately did not materialize.

I appreciate your feedback and if you could include some tax/IRS references it would help grately.

Thanks.
It was an INCOME propery

A. Good starting reference is to obtain a Publication 17 from the IRS. You can call their order line or go to IRS/GOV and use forms and publications. If buying/selling properties is a business for you then all expenses related thereto should be deductible. Travel, lodging, meals, phone, legal, yaddah. If you lost money at it then welcome to the real world.

Original Question

How do I figure ACV for a contents personal property insurance claim?

Q. I just posted earlier. I have another question. I tried to complete some of this personal property inventory worksheet that Statefarm gave me....It asks me for Replacement Cost, and then asks me for Actual Cash Value. It seems I have to depreciate the item. How do I depreciate an item like my sofa?

A. You do not have to depreciate the items - they'll do it for you.

Original Question

After accident if damage is 20k over can a house be taken?

Q. Hi,

I am all for paying debts and will pay if need be. My question is that I have property insurance on the car for X and after my accident the damage came out to be X+20k. I am about to buy a house. Could the house be taken for the 20k? Or could I establish more of pay X amount until the whole thing is paid off? Or is it more likely that they would go after their insurance company for under-insured motorist?

Thanks
I live in MA

A. Yes, a lien could be put against the house, or more likely, your WAGES, for the additional amount of damages.

Yes, they'll file an underinsured motorist claim under their own policy, or even a collision claim (since underinsured motorist is for injury), but then their INSURANCE company will come after you to get the money back.

You can't get out of paying for your damages, by driving underinsured, and getting off the hook with no responsibility because the other guy carried adequate insurance limits. It doesn't work that way. One way or another, they'll get reimbursed.

Original Question

What Happens if i have a learner permit and driving with father(having license ) i damaged a private property?

Q. no one got any hurt and yeh we broke the fencing of the apartment area while taking reverse......small damage to vehicle ,scratches to vehicle and called police also called insurance agent? the question is that there is no INSURANCE of mine or my father the owner of car is my sister she is 19 yrs old ? how much insurance get increase and what are bad possibilites that can happen? i am resident of MASSCHUSETTS

A. Number one is that you will probably get charged with driving without valid public liability insurance. That's a serious charge. Don't worry about your sister's insurance. Worry about the licence you will not get and the heavy fine you will get.

Original Question

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