Yes. You would deduct %30 of the expenses. You cost basis is %30 of the purchase price plus %30 of improvements.
Sales expenses are listed in the sellers column of your settlement statement and include:
- commissions
- appraisal fees
- broker's fees
- legal fees
- advertising fees
- home inspection reports
- title insurance
- transfer taxes or fees
- geological surveys
- loan charges (points) or other fees paid on the buyer's behalf
- any fees for a service that helped you sell your home without a broker (listing fees, promotional fliers, etc.)
NOTE:
Sales expenses do not include:
- mortgage payoffs
- home equity loan payoffs
- rent-back costs
- payoff to creditors
- property taxes
- home owner association fees
To report the sale :
Scroll down to Less Common Income.
Click Start next to Sale of Home.
- Login to your account.
- Select Federal from the left menu
- Go to Wages and Income then Income and Expenses.
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