Hi,
I have a unique situation. A client of mine in January 2006 wrote a check to the mortgage company of her friend for 60,000 and wrote her friend a check for 35,000 for improvements to the house as her investment into the home. This home was to be their residence together. The friend originally paid 360,000 for the house. She put 200,000 down and had a loan for 160,000. My client wrote a check to the mortgage company for 60,000 to pay down some of that loan as her investment in the house. In July of 2007 her friend's ex husband moved into the house and they got back together. My client was forced to move out. Her friend gave her 45,000 of her original investment back. She could not give anymore as she does not have it. There is no court or anything involved. My client will not be getting back anymore of her original investment. I am assuming she can't take a loss of 50,000 because this is a personal loss. It was her personal residence with her friend. Any suggestions? Any loopholes to take a loss? Anyone experience this before?
Thanks!
GTS1101
I have a unique situation. A client of mine in January 2006 wrote a check to the mortgage company of her friend for 60,000 and wrote her friend a check for 35,000 for improvements to the house as her investment into the home. This home was to be their residence together. The friend originally paid 360,000 for the house. She put 200,000 down and had a loan for 160,000. My client wrote a check to the mortgage company for 60,000 to pay down some of that loan as her investment in the house. In July of 2007 her friend's ex husband moved into the house and they got back together. My client was forced to move out. Her friend gave her 45,000 of her original investment back. She could not give anymore as she does not have it. There is no court or anything involved. My client will not be getting back anymore of her original investment. I am assuming she can't take a loss of 50,000 because this is a personal loss. It was her personal residence with her friend. Any suggestions? Any loopholes to take a loss? Anyone experience this before?
Thanks!
GTS1101
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