Hello Miss Cathy,
You asked "What IRS publications would provide this information?". I can certainly help you out with this.
Publication 544 and publication 527 are two IRS publications that deal with selling a rental property, as well as having a rental property.
https://www.irs.gov/forms-pubs/about-publication-544
https://www.irs.gov/publications/p544
Publication 544 explains the tax rules that apply when you dispose of property. It discusses:
- How to figure a gain or loss.
- Whether it is ordinary or capital.
- How to treat the gain or loss.
- How to report a gain or loss.
According to the IRS, deductible closing costs include interest, real estate taxes and some mortgage points.
When you sell the home, you can use settlement fees and closing costs for buying the property to use as an addition to your original basis.
Other expenses include:
- Abstract fees
- Charges for installing utility services
- Legal fees
- Recording fees
- Surveys
- Transfer taxes
- Title insurance
https://www.irs.gov/publications/p527
https://www.irs.gov/forms-pubs/about-publication-527
I would also suggest reviewing the TurboTax website dealing with Rental Real Estate:
https://turbotax.intuit.com/tax-tips/rental-property/real-estate-tax-and-rental-property/L3e09vT71
Thanks,
Sean
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