Tax reporting for loss of earnest money

[Gregg C.]

Tax time again...

I had a deal on a commercial property in 2014 that never closed. I lost half of my earnest money as a result. Trying to figure out how to do taxes. The LLC for this deal was only set up for this deal and didn't do anything else.

I read a post on "just answer" tax section saying to use a form 4797. Anybody know if this is correct? Is there some other method that is more appropriate? I am trying to avoid having to pay a CPA to do taxes on this LLC since the only thing this LLC did in 2014 was loss earnest on this one deal.

Thanks, Gregg