Yes, the rule still applies to your situation. The transfer tax is always added to the cost basis of the property and becomes part of the purchase price as well as other closing costs. The link provided by our Tax Expert @MindyB has valuable information and is posted here again for your convenience. Tax Breaks and Home Ownership
Government Recording and Transfer Charges
- Recording fees
- Title Charges
- Lenders Title Policy
- Settlement or Closing Fee (Includes Transfer fees)
- MLC - Municipal Lean Certificate
- Title Exam
- Owners title Insurance
You can include these closing costs and add them to the cost basis of the property.
Loan charges - Loan charges are part of the loan, not cost basis
- Application fees
- Lender fees
- Appraisal Fee
- Inspection Fee
- Condo Questionnaire
- Credit Report
- Debt Report
You can't include in your basis the fees and costs for getting a loan on property.
@ceseker
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