The following charges are used to add to the cost basis of the property, they will be bold. You can add them in a category you feel is most appropriate or put them in Legal Fees. As long as you have the documentation that's what is important. If there are commissions be sure to include that as well.
Do no use any mortgage interest, real estate or school taxes, local or city taxes. Transfer tax is a separate and identifiable expense of purchasing a property.
Correction- See IRS Publication 551 (pages 2 & 3)
Loan charges - Loan charges are part of the loan and not added to 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.
Government Recording and Transfer Charges
-Recording fees
Title Charges
-Lenders Tile Policy
-Settlement or Closing Fee
-MLC - Assuming it means Municipal Lean Certificate
-Title Exam
-Owners title policy
I'm not exactly sure what the last two are, but the rest would be closing costs that can be added to the cost basis of the property as noted above.
Please see the update above.
@paulf615
[Edited: 02/07/2024 | 5:43 AM PST]
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