@Snowy_Desert wrote:
Thanks! Is it appropriate to put the total closing costs as "Seller Expenses"? Would it matter given it's still less than $250,000 profit?
If the gain on the sale was much less than the exclusion, it probably would not matter. But this is how it should be reported -
Closing costs you paid are added to the basis of the home -
Abstract fees (abstract of title fees),
• Charges for installing utility services,
• Legal fees (including fees for the title search and preparing the sales contract and deed),
• Recording fees,
• Survey fees,
• Transfer or stamp taxes, and
• Owner's title insurance.
Selling expenses include -
a. Any sales commissions (for example, a real estate agent's sales commission)
b. Any advertising fees
c. Any legal fees
d. Any mortgage points or other loan charges you paid that would normally have been the buyer's
responsibility
e. Any other fees or costs to sell your home
