If a property is a rental, Publication 527, not 530, is the right one (publication 527 is for real properties that are owned for income, Publication 530 is for properties that owned for private use). This publication states that title insurance is part of a property basis and is deductible when calculating capital gains.
Settlement fees and other costs.
The following settlement fees and closing costs for buying the property are part of your basis in the property.
Abstract fees.
Charges for installing utility services.
Legal fees.
Recording fees.
Surveys.
Transfer taxes.
Title insurance.
Any amounts the seller owes that you agree to pay, such as back taxes or interest, recording or mortgage fees, charges for improvements or repairs, and sales commissions.
