A second home is investment property. The purchase price of the land and the costs of construction form your basis. Everything you spent to create the home is part of the basis.
Staging costs are not added to the basis. The following can be.
Seller closing costs are made up of several expenses. Here’s a quick breakdown of potential costs and fees:
- Agent commission
- Transfer tax
- Title insurance
- Escrow and closing fees
- Prorated property taxes
- Credits toward closing costs
- Attorney’s fees
