Ok here is how my selling transaction to Opendoor company.
- Gross proceeds (report to IRS): $251,000
- Service charge or fee from Opendoor: $12,500
- Closing fee: $2500
- Repair cost (credit to Opendoor): $35,000
- Net proceeds (take home): $201,000
I believe that I can deduct the amount of "service charge" and "closing fee" from the gross proceeds; but not the repair cost of $35,000. Is this correct? Opendoor wrote "Repair cost" on the closing statement; so it can not be treated as an improvement.
