Adjusted basis is calculated by taking the original cost of the property, then add the cost of improvements and subtracting any deductions taken for depreciation.
Based on the your numbers your profit should be:
Selling price 217,000
Less Selling Expenses ( 28,960)
Net Sales 188,040
Adjusted basis
Purchase Price (186,000)
Profit on the Sale of Home 31,000
However, we will need more information to really be of help to your specific situation. For one, you don't seem to own the home for the minimum five year period required for you to be eligible for the exclusion of gain on sale of personal residence. Also, was the property a rental and did you deduct depreciation which may also affect your profit? Also, you may also want to consider other additional improvements made to the property to get a step up on your adjusted basis. Check this Turbo Tax article out for further information.
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