Your cost basis is $350,000.or the Fair Market Value at the gift date - whichever is lower.
The sales price minus the cost to sell the property is what you should be used to calculate the gain. Closing costs (title fees, real estate commissions, documentary stamps, credit report costs, costs of an abstract, transfer taxes, home inspection, flood certificate, attorney fees, etc.), reduce the sales price of the property. These expenses are not deductible on your return. They can only be used to reduce the selling price.
Make sure you have the date you acquired the home entered correctly. It should be considered a long term capital gain.
If the home was only used for personal purposes (not a rental), you cannot deduct the loss on the sale. You cannot take a deduction for the loss on personal use property,
