@Cheilman - please see
https://www.irs.gov/pub/irs-pdf/p530.pdf
and specifically the right bottom of page 11 and continuing onto page 12:
Items added to basis. You can include in your basis the settlement fees and closing costs you paid for buying your home. A fee is for buying the home if you would have had to pay it even if you paid cash for the home.
The following are some of the settlement fees and closing costs that you can include in the original basis of your home.
• 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.
the interest can be added to the cost basis, but it is not deductible.
