Drew-M
Expert Alumni

Get your taxes done using TurboTax

Hello!

 

The short answer is yes you can!

 

Deducting expenses when selling a home can be a bit tricky. Instead of deducting the expenses, you are going to add them to the cost basis (the original purchase price). 

 

Some items that you can add to the cost basis:

 

• Abstract fees (abstract of title fees).
• Charges for installing utility services.
• Legal fees (including fees for the title
search and preparation of the sales contract and deed).
• Recording fees.
• Surveys.
• Transfer or stamp taxes.
• Owner's title insurance.
• Any amount the seller owes that you agree
to pay, such as back taxes or interest, recording or mortgage fees, cost for improvements or repairs, and sales commissions.

 

When reporting the home sale, you will be given a 1099-S form. Within TurboTax, you then will determine the cost basis (original purchase price + any qualifying expenses).

 

Hopefully this answers your question!

 

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More information can be found here:

https://ttlc.intuit.com/community/credits-and-deductions/help/can-i-deduct-home-improvements-on-my-t...

 

IRS sourced material:

https://www.irs.gov/forms-pubs/about-publication-530

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