When calculating the cost basis adjustments for a new property purchase, we can add the title insurance to the cost basis.
But it's not clear if we should add both Lender title insurance (ALTA loan policy) and the homeowner policy. Do both count towards cost basis? Both of them were paid and were included in the buyer side settlement costs for the purchase.
I am assuming we should add both because for one a) there is no clarity on the IRS instructions b) both were required and included in purchase, so it's a cost that was accrued to purchase property.
