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jpatul
Level 2

Basis of Inherited Real Estate

inherited a home and sold it. Can selling costs (commissions etc) or seller closing concessions be deducted from the gross proceeds or increase basis ? Also, would love to locate guidance  - IRS Pub 551 does not mention selling costs.  and most guidance seems to highlight the stepped up basis concept. 

There seems to be an adjustment in the deluxe version to deduct selling costs from the gross proceeds since 1099-S usually are reported using gross proceeds - you check a box if you have adjustments

thx

2 Replies
tagteam
Level 15

Basis of Inherited Real Estate


@jpatul wrote:

inherited a home and sold it. Can selling costs (commissions etc) or seller closing concessions be deducted from the gross proceeds or increase basis ? 


You can deduct various selling expenses from your gross sales price.

 

See https://www.irs.gov/publications/p523#en_US_2020_publink100072704

jpatul
Level 2

Basis of Inherited Real Estate

thx - just want to sure there is no difference in regular home sales vs inherited property

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