"purchase price + cost to buy + cost to sell + improvements or capitalized expenses are totaled and that becomes your cost basis. "
purchase price = $20k total (previous owner paid closing fees)
sell price = $23k
improvements = 0
realtor sale fees = $1,500
Total $ coming back from sales = $21,500
In general, since I am paying a realtor a commission, my total net coming to my bank will be $21,500,
I assume the cost to sell would be the $1,500 realtor commission.
