You would add the lawyer's fees to your basis in the lot, as if it were part of the original value when you inherited the lot.
Example:
If your basis (value at time inherited) was $100,000 and you spent $2,000 in legal fees to obtain clear title, your adjusted basis would be $102,000.
If you sold it for $200,000 and had selling costs of $5,000, your net proceeds would be $195,000.
Your resulting gain would be $93,000 ($195,000 minus $102,000).
Where do I enter the sale of a second home, an inherited home, or land?
https://ttlc.intuit.com/replies/4241480
