your closing cost at purchase should have been included in the tax basis and depreciated. closing costs at selling are a selling expense.
if you have not depreciated the applicable purchase closing costs, see a tax pro. this needs to be corrected. the IRS position is that if you didn't depreciate the applicable closing costs upon purchase, you have to compute your accumulated depreciated as if you did and you can't take a deduction for all the missed depreciation without filing form 3115. not a chore for most taxpayers.
not all closing costs affect basis or are selling expenses. the following list is not all-inclusive:
real estate taxes, any interest charged or credited, homeowners association fees, insurance are reported on schedule E rental income/expenses.
