Yes, according to IRS publication 523, you can deduct the following settlement costs from the proceeds listed on your closing statement.
- 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.
Review the publication link I included above to review the costs that cannot be deducted. To report:
- Click on Federal Taxes (Personal using if Home and Business)
- Click on Wages and Income (Personal Income if using Home and Business)
- Click on I'll choose what I work on (if shown)
- Scroll down to Less Common Income.
- On Sale of Home (gain or loss), click the start or update button.
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