JulieS
Expert Alumni

Deductions & credits

No, your escrow account doesn't affect the basis of a home in any way. 

 

In simplest terms, your adjusted basis is the amount you paid for the property, plus the cost to acquire the property, improvements, and minus certain costs for tax credits, depreciation, and more. 

 

That being said, there are slightly different rules for determining the basis to calculate a gain on a sale, or the basis for deprecation. If the seller and buyer are related parties, that changes things too. 

 

If these "credits" placed in escrow do affect the basis of your home, the information will be shown on your closing statement. That is the document you need to work with. 

 

TurboTax has detailed information in the program to help you figure your basis, but if you want a more detailed answer, ‌ respond back with more detail about exactly what you are trying to do. 

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