I would add the $1750 to your cost basis, to reduce your capital gain.
Alternatively, you can call it selling expenses.
The "correct" way is to reduce the selling price, but that risks waiving a red flag at the IRS, since the 1099-S is more. Form 4797 actually has a place to enter the 1099-S amount (and TurboTax does that). So, you may be OK, even when you report a different sales amount than shown on the 1099-S.
