Claiming Investment Loss

[Bjns935]

I rented a piece of property, put up utility deposites, got permits, attended state certification class, made property improvements, etc. I could not get floor planning coverage for the units to sale. I never got to open the business. How will I file my investment loss? Will I have to show everthing in detail? What method and form?

 

[loku]

Investment loss

The easiest way to do this is to deduct your loss on the line for "other income" on Page 1 of your 1040. The alternative is to show it as a loss from a business on Schedule C of form 1040. The latter is probably technically correct, but the result is the same and showing it as a loss on "other income" is much easier.

Include a schedule with the return, showing the loss in as much detail as possible. The last line of the schedule should be the amount of loss. Label that line as "Loss to Page 1, line (give the number of the line for "other income" on the return.)