Yes. The basis of the property will be the Fair Market Value plus Improvements, your closing costs, etc. You can add certain closing costs; not everything is added to the basis.
The following items are some of the settlement fees or closing costs you can include in the basis of your property.
• Abstract fees (abstract of title fees).
• Charges for installing utility services.
• Legal fees (including title search and preparation of the sales contract and deed).
• Recording fees.
• Surveys.
• Transfer taxes. Intangible taxes.
• Owner's title insurance.
• Any amounts the seller owes that you agree to pay, such as back taxes or interest, recording or mortgage fees, charges for improvements or repairs, and sales commissions.
