As a business, you could set up the home you sold as a Business Asset, with an original Cost Basis of what you paid for it. Then report the 'sale of the asset' where your Sales Expenses are added to the Cost Basis and substracted from Sales Price to determine the Gain/Loss on the sale.
Your HUD settlement costs would be considered Sales Expenses.
Any property improvements you made after purchase could also be added to the Cost Basis when reporting the sale.
Here's more info on Home Sale for Real Estate Professionals.
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