For the purpose of reducing capital gains on sale of a second home, most closing costs are considered selling expenses that can be used to reduce the gain, correct?
Much of the information and publications online seem to addresses the topic of closing costs primarily from the purchase/buyer perspective rather than seller perspective.
I believe typical seller's closing costs can be treated as selling expenses and reduce a capital gain, for example.
- Commissions
- Typical filing fees
- Owner's Title Insurance
- Transfer / Doc stamps
The total would typically end up under Code 'E' adjustment on 8949, essentially reducing the gain.
SE
