1st Deal Went Bad...tax Implications?
I bought a house in May on CD, sold it in July on CD (for a nice profit, or so it seemed at the time) but my buyer flaked and hasn't paid a dime since the small down he paid at closing in July. Lots of excuses. Once I get him out--which could be 2 more months--I'll be in the red overall. Plus the lost time, possible rents/payments, etc.which I know I cannot claim on taxes.
Am I gonna need to throw (invest?) good money after bad and pay an accountant to sort out the tax implications? If I wait a few more months, can I sell it again and possibly turn my profit into long term at least?
My mistake I think was to sell it as a fixer-upper (which he assured me he could handle)., and with low down (less than 5%), and without requiring insurance to be brought to the closing (he said he "was on it."
. The guy apparently was too broke to make any of it happen, and was in over his head. He may have actually made a calculated investment--the low down payment--in getting a place to live for 6 months at my expense. Sigh...
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