Claim inspection costs for a cancelled contract?

[John A.]

I couldn't find an answer to my question through several searches, so here goes.

Background: I own a SFR that is rented out. I do my own property management for this house. I am currently trying to buy another SFR to rent out.

Situation: I had a contract with a seller on a SFR. The inspection showed problems with the roof. The seller refused to repair the roof. I elected to cancel the contract.

Question: Can I claim the costs of the inspection (I paid the inspection cost) as a business expense?

I think the answer is Yes. But, I haven't found anyone else with a similar experience/situation. I know you can't give "official" legal/tax advice. But what's your opinion? Has anyone else dealt with this?

Thanks in advance! This is a great place to learn the ropes.

John

[Tevis Verrett]

Hey John Andruszka yessss buddy!

This is how the Fed Govt looves us investors.

It is 1040 Schedule E, Line 10
Legal and other professional fees

That is where that expense goes. And man, you better have a receipt to back that deduction up if you are ever audited.

YMMV, Objects are ALWAYS closer than they appear,

Tevis