Can I claim a loss on my taxes (federal or state) on a Real Estate Condo deal gone bad?

I put down 10k on a new construction condo. Before we could close the place flooded and we decided to back out. The builder would only give us back 5k or half the deposit. Is there any way to claim the other 5k I lost when I do my taxes?

Public Comments

1. Good qtn for a CPA...might be a schedule E filing....