If you paid transfer taxes, stamp taxes, or other taxes, fees and charges as the seller, you can include them as selling expenses. Everything on there is either a selling expense or an adjustment to your basis. Selling Expenses include:
- Any sales commissions
- Any advertising fees
- Any legal fees
- Any mortgage points or other loan charges you paid that would normally have been the buyer's responsibility
- Any other fees or costs to sell your home
You can also deduct:
- Home improvement costs as an adjustment to the basis of the home you sold (which are more or less permanent changes to the house and not the same as repairs and maintenance)
- Mortgage interest and/or real estate/property taxes charged at closing
- Selling expenses to reduce your gain on the sale side of the home (see above)
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Some settlement fees and closing costs you can include in your basis are:
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Abstract fees (abstract of title fees),
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Charges for installing utility services,
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Legal fees (including fees for the title search and preparing the sales contract and deed),
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Recording fees,
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Survey fees,
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Transfer or stamp taxes, and
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Owner's title insurance.
Some settlement fees and closing costs you can’t include in your basis are:
Look at Selling Your Home by the IRS for more in-depth information.
Home Sale Deductions
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