I need to calculate the Cost Basis for the property.
THis is confusing. Now I'm not clear if you're the buyer or the seller. So I'll just answer the above question directly and straight to the point.
The only settlement or closing costs you can deduct on your tax return for the year the home was purchased or built are Mortgage Interest and certain Real Estate (property) taxes. That's it. They can only be deducted on the tax return for the tax year you closed on the purchase.
If you later convert the property to a rental or other qualified business use,(even if years after the initial purchase) then there are other fees on the HUD-1 that can be claimed in the year you convert the property to a rental or other qualified business use.
