Question on how to "write off" a loss

[Doug Whyte]

Hi!

A few years ago my wife and I invested in a Condo Development in BC Mexico.  Should have known better!  Anyway, nothing ever got built, I never got my unit, and the only thing that did happen was that the developer and my money went bye bye.

Does anyone know of a way to write off that loss so I can recoup some of it through income tax reductions?

[Linda Weygant]

Originally posted by @Doug Whyte:

Hi!

A few years ago my wife and I invested in a Condo Development in BC Mexico.  Should have known better!  Anyway, nothing ever got built, I never got my unit, and the only thing that did happen was that the developer and my money went bye bye.

Does anyone know of a way to write off that loss so I can recoup some of it through income tax reductions?

 OOF!  Tough scenario.  So sorry this happened to you.

This would be a capital loss and you can write this off against any capital gains you might have (stock sales, other rental property sales, etc).  In the event you don't have that type of income, you write it off $3000 per year and continue to roll it over.  The original loss (and associated legal fees) are reported on line 8a of Schedule D and then roll over year over year on line 14 of the same schedule.

Good luck!