I'm trying to figure out what on my closing disclosure are part of the cost basis of my property. According to IRS, the following items should be included. I'd like to have a second opinion on which items on my closing disclosures match with them:
Sales tax.
Freight.
Installation and testing.
Excise taxes.
Legal and accounting fees (when they must be capitalized).
Revenue stamps.
Recording fees.
Real estate taxes (if assumed for the seller).
What appear on my closing disclosures that are paid by me include:
A - Origination Charges
A1 - 1% of Loan Amount (Points)
A2 - Processing Fee to Lender
A3- Underwriting Fee to Lender
B - Service Borrowers Did Not Shop For:
B1 - Appraisal Fee to valuation service
B2 - Attorney Fee to law firm
B3 - Credit Report Fee
B5 - Title - E-Recording Fee to title company
B6 - Title - Escrow/Settlement/Closing Fee to title company
B7 - Title - Insurance Endorsements to title company
B8 - Title - Mortgagee's Title Policy to title company
B10 - Title - Texas Guaranty Fee to title company
E - Texas and Other Government Fees
E1 - Recording fees (Deed, Mortgage)
F - Prepaids
F1 - Homeowner's Insurance Premium
F3 - Prepaid Interest
G - Initial Escrow Payment at Closing
G1 - Homeowner's Insurance
G3 - Property Taxes
I wonder if the cost basis would only include the sale price plus the B2, B5 and E1 above. Thanks for your help!
