See the information below (with emphasis added), copied from the IRS Publication 530 section on closing and settlement costs at this link:
"The only settlement or closing costs you can deduct are home mortgage interest and certain real estate taxes. You deduct them in the year you buy your home if you itemize your deductions. You can add certain other settlement or closing costs to the basis of your home."
"The following are some of the settlement fees and closing costs that you can include in the original basis of 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.
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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 preparation of the sales contract and deed).
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Recording fees.
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Surveys.
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Transfer or stamp taxes.
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Owner's title insurance.
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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."
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