TurboTax uses these descriptions because the IRS uses these descriptions. If you can't translate what is on your closing document to what the IRS wants, you could ask your broker.
Fees and Closing Costs
Some settlement fees and closing costs you can include in your basis are: • Abstract fees (abstract of title fees), • Charges for installing utility services, • Legal fees (including fees for the title search and preparing the sales contract and deed), • Recording fees, • Survey fees, • Transfer or stamp taxes, and • Owner's title insurance.
Settlement costs don’t include amounts placed in escrow for the future payment of items such as taxes and insurance.
Some settlement fees and closing costs you can’t include in your basis are:
• Fire and casualty insurance premiums,
• Rent for occupancy of the house before closing, • Charges for utilities or other services related to occupancy of the house before closing,
• Any fee or cost that you deducted as a moving expense (allowed for certain fees and costs before 1994),
• Charges connected with getting a mortgage loan, such as:
1. Mortgage insurance premiums (including funding fees connected with loans guaranteed by the Department of Veterans Affairs),
2. Loan assumption fees,
3. Cost of a credit report,
4. Fee for an appraisal required by a lender
5. Points (discount points, loan origination fees), and • Fees for refinancing a mortgage.
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