Lost earnest money

[Joe M]

Recently my all cash offer on one of the forclosed property got accepted. Bank gave me just 3 days to get property inspected. I tried to negotiate but they did not accept my request to increase the inspection window.

Due to personal issues I could not get property ispected. And Igot property inspected 10 days after the offer got accepted.

I am going to lose 1K earnest money. Thats ok. Expensive lesson learned.

My Question is:
I have 3 other rental properties, So at the time of filing taxes can I deduct this lost earnest money as a business loss? If Yes, Under which category?

Also, I have been driving around looking at various properties. Can I claim all the mileage unser my rental business?

All the properties are under my name with 2M umbrella.

Thanks for your help.

[Mitch Kronowit]

I'm not a CPA, but I discussed expenses related to property acquisition with ours and he said up until you own the property, your expenses basically go on your Schedule A under "investment expenses", then after you own the property, they go on your Schedule E.