I have a client who lost $ 61K on a real estate ( a condo) investment. The intention was when the project was complete they were going to rent out the condo. My client has his own place in Florida. When the construction was complete the building never opened. They went to litigation and when all was said and done my client lost $ 61,094 ( Deposit $ 122,000 less expenses of litigation $ 60,906).
Can this be considered an ordinary loss or is it a capital loss?
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Gary Geisenheimer
EA
Gary Geisenheimer
Woodbury NY
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