Tax Right Off On Failed Investment
Is it possible to right off payments and money spend to rehab on a failed investment property. I had a property that was on Contract for Deed. I did all the work spent the money on improvements, put a renter in the house who never paid the rent. I was unable to evict the tenant because the recorded title did not have my name on it. So I hired an attorney to releive me of all responsiablities. Can I write any of this off on my taxes. I was thinking I probably wouldn't because I was more or less just renting the property. Any insight would be much appreciated.
Michelle
Frustrated Investor 
Once you have truly abandoned the land contract, any amount spent on the it can be written off...whether you've "abandoned" it turns on the exact facts. You should not need title to evict - I'd have appealed the idiot judge's ruling, though I'm amazed that any judge would be dumb enough to rule that way.
John Hyre[ Edited by joel on Date 02/05/2004 ]