Can I not include the lender credit in the cost basis?

[Sdbywf]

Can I not include the lender credit in the cost basis?

I sold my primary home and need to calculate and report capital gain on it.

Here is a list of some of the closing costs in the buyer's settlement statement when I purchased the house that I do not know how to treat/report.

1. Loan application fee                        500
2. Loan underwriting fee                     500
3. Appraisal fee                                     500
4. Lender credit                                    -1500

My questions are:

1. In Publication 523, Selling Your Home, IRS directly indicated that item 3 (Appraisal fee) can not be included in the cost basis because it is a fee that connected with getting a mortgage loan. How about item 1 and 2 (Loan application and underwriting fees)? Can they be included in the cost basis? are they considered as charges connected with getting a mortgage loan as well and can't be included in the basis?
2. Item 4 (lender credit) is a credit the lender offered to me to offset item 1-3. If item 1-3 can not be included in the basis, can I use item 4 (lender credit) to offset item 1-3 and not included it in the basis?

Thank you for your help!

[Critter-3]

Since the credit offsets the fees you will NOT enter any of those in the program ... that will solve your issue.