How much can I write off on a bad real estate investment?

A couple of years ago I invested 50k into a bad real estate investment. The person heading up this llc actually committed fraud and was sentenced to 10 years in prison. I am looking to write off this investment for the year 2008 and have had conflicting reports on what I can write off. Does anyone know what you can write off on a bad real estate investment?

Responses:

Yahoo answers is probably the wrong place for your question. It's too important. If you really want to find your answer online try justanswer.com. This is a pay per question site where the questions are answered by verified industry professionals. Once you have an idea of what you should do, I'd suggest confirming it with your local tax agent
If you bought the real property as an investment you can write it off. If you bought the place to live in it, or if you did live in to avoid capital gains tax, you're out of luck
Only an accountant can answer that question accurately. I am not an accountant, so take this advice for what it's worth. You can write the loss off in the year that you took / had to take the loss. For example, if you'd bought stock at $20 a share and over a few years it declined to $5 a share, and you sold it at that price, your loss would occur in the year you sold the stock. With real estate, if you buy a property for $100, 000 and 3 years later sell it for $50, 000, you incurred a $50, 000 loss in the year you sold it. I was involved in a situation remarkably similar to yours. Luckily, for me it was only $15, 000. Again, check with an accountant. But, in your case, it would be the year that your $50, 000 became valueless. Clearly, there can be some gray area - is it the year a court judged the activity to be a fraud? Or, for instance, a year earlier if the LLC declared bankruptcy? An accountant should advise you on this. If, technically, it's too late to take the writeoff for 2008, you can file an amended return for a previous year. Hope that helps

Tags: valueless, luckily, question, online, late

Follow this dicussion..

Related Images:

Knowledge Base

Will student loans stop me from getting a home loan?

i am about to gain a $13000 debt in student loans. in about 6 months we are applying for a home loan. will that student loan be applied to my debt to owe ratio? will it be a factor when applying for a home loan?. when applying for a home (real estate investor)

Does a business degree teach to a Real Estate Investor?

if i want to be a real estate investor, should i major in business? "no" why not?. you would probably be better off taking a lot of carpentry and other repair courses. knowing how to fix things and knowing how to evaluate whether a house is a gem or a (home loans)

Is part of the job of financial advisors to predict the stock market's and economy's directions?

financial advisors help people create a diversified portfolio based on their client's age, ets, risk tolerance, and retirement goals. should they also try to predict such factors as the long term 1 year out and farther interest rates, stock market performance, bubbles such as housing and the nasdaq, etc. , (land investment)

Related Images:

Knowledge Base: Real Estate Investment

For a new real estate investor, what are the FIVE biggest mistakes to avoid?

for a new real estate investor, who has been studying a number of courses and is ready to get going with flips and rental property, what are the five biggest mistakes i should look to avoid that most investors make?. 1. choosing a really, really bad realtor. i am not (real estate investing)

How to become a real estate investor?

hello real estate brokers and investors everywhere! i am 22 y / o and i want to get into the real estate business. first and foremost, i wanna know if you need to become a real estate broker before becoming an investor? because the way i see it, being a (real estate investment)

What type of degree do I need to pursue to become a real estate investor?

i want to become a real estate investor and need to know what kind of schooling i need. i do not know of a specific degree for that, i too plan on pursuing real estate investments. i am currently a business finance major with an emphasis in real estate, however (real estate funds)

What is the best real estate investor website?

i am a short sale investor looking for a real estate investor website service to help produce leads. some of them out there seem very expensive. i am looking for an inexpensive option that has all of the squeeze pages and free reports to use in a marketing campaign to (real estate investment)

How do I profit from the internet as a Real Estate investor?

am a real estate investor and i like the internet for what it can do but am at a loss on how to use it to enhance my business. can somebody help me fast?. you can trade reit's. a real estate investment trust or reit. these are actually stocks as (real estate funds)

Related Images:

Knowledge Base: Real Estate Investment

How profits be split on a 3 real estate investment?

i am involved in a 3 - way investment on a rental property and we are being forced to sell because of a dot project. our profit on this property will be approximately $75, 000 and we need to figure out how to split this up. being close family members, (real estate investment)

Need accurate objective info re real estate investment co s direct mail offer to buy home cash

being as you include the term "scam" in your. tags, you must already know my answer. even in today's weaker market, there is little reason to sell a property for any less than 75. check the credentials of the company. some widely used resources are the better business bureau bbb.org (real estate investment)

What is real estate investment trust fund to invest in?

i heard that reit real estate investment trust funds are the way to go, i plan to invest in reit through fidele y, and was wondereing which company has the best reit funds i can invest in?. reits have had a great run these last several years. be aware it (real estate investment)

Are townhomes a good real estate investment?

i wanted to know if townhomes are a good real estate investment. i have heard mixed reviews from different sources. for instance, i have heard that in a bad market, these types of properties depreciate the most. i also heard that they are harder to resell and get the full (real estate investment)

Is "flipping" homes a good real estate investment?

i am interested in buying homes to "flip". i want to know if it is a good idea or a money burner! is there a website that may help in my decision?. point to ponder, the housing market today and the problems we have are from product minipulation. i have (real estate investment)