What you state is what I ended up doing prior to asking my question; however, per the instructions for Form 8949, the expenses are to be entered as an adjustment in column (g) of the form along with a code entered in column (f) of the form. What I'm worrying about is that the IRS will not like the proceeds amount that ends up in column (d) of the form will not be in agreement with the "gross proceeds" amount in box 2 of the 1099-S without any explanation for the difference. I may be setting myself up for receiving a letter from the IRS.
