Yes, the closing costs on the purchase are added to the basis. You can also deduct selling expenses from the sales price (gross proceeds). Almost all closing costs can be listed. Sales expenses are listed in the sellers column of your settlement statement and include:
- commissions
- appraisal fees
- broker's fees
- legal fees
- advertising fees
- home inspection reports
- title insurance
- transfer taxes or fees
- geological surveys
- loan charges (points) or other fees paid on the buyer's behalf
- any fees for a service that helped you sell your home without a broker (listing fees, promotional fliers, etc.)
Sales expenses do not include:
- mortgage payoffs
- home equity loan payoffs
- rent-back costs
- payoff to creditors
- property taxes
- home owner association fees
Please feel free to post any additional details or questions in the comment section.
