Unfortunately, the IRS will not allow you to deduct the cost of a home warranty as a selling expense when computing the gain/loss on a sale of your home.
Here is what the IRS allows for Selling Expenses:
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Any sales commissions (for example, a real estate agent's sales commission)
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Any fees for a service that helped you sell your home without a broker
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Any advertising fees
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Any legal fees
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Any mortgage points or other loan charges you paid that would normally have been
the buyer's responsibility
