You are actually agreeing with me. I think my statement was worded wrong. Instead of "Second, the costs of obtaining the original mortgage, appraisal, inspections, title fees and so on, are included in the basis for the property.", I should have said "Second, the original costs of buying the home obtaining the original mortgage, appraisal, inspections, title fees and so on, are included in the basis for the property." These cost are included in the basis even if they are rolled into the original mortgage but not when you refinance.
