Yes, those fees (Closing costs, realtor fees) may be deducted from the proceeds of the sale.
First you'll take your cost, add any improvements, such as a room addition.
Next, you can deduct closing costs (or add then to the basis)
According to the IRS:
"Some settlement fees and closing costs you can include in your basis are:
Abstract fees (abstract of title fees),
Charges for installing utility services,
Legal fees (including fees for the title search and preparing the sales contract and deed),
Recording fees,
Survey fees,
Transfer or stamp taxes, and
Owner's title insurance."
Sales commission would also be an expenses.
What you "rolled over" to build the other house does not get accounted for in any way. That will just add to the basis of the new house.
If the "profit" on the sale of the house is LESS THAN $250,000, (or $500,000 if you file Married Filing Jointly) you won't need to report the sale of the home as long as you meet the other requirement, such as living in the home at least 2 of the previous five years. CLICK HERE for information about the Home Sale Exclusion
However, if the profit is over, the excess will be Capital Gains. You can't roll over property gains on a personal residence.
Since you owned the home for thirty years, the home may have appreciated quite a bit and you may be over that 250,000/500,000 limit, so I thought I should edit my answer, in case you do need to report the sale.
HERE is an IRS link with more information
TurboTax will walk you through it.
[Edited 02/12/2025 I 3:09pm PST]
@Georgietaxes
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