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New Member
posted Jun 1, 2019 1:31:04 PM

I sold a rental property in 2018 that I owned for 12 years. Can I use closing costs from the purchase and the sale to adjust my basis?

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1 Best answer
New Member
Jun 1, 2019 1:31:07 PM

Yes. Per IRS Publication 527, Chapter 2, page 7: The following settlement fees and closing costs for buying the property are part of your basis in the property

  • Abstract fees.
  • Charges for installing utility services.
  • Legal fees.
  • Recording fees.
  • Surveys.
  • Transfer taxes.
  • Title insurance.
  • Any amounts the seller owes that you agree to pay, such as back taxes or interest, recording or mortgage fees, charges for improvements or repairs, and sales commissions.

Related information:

2 Replies
New Member
Jun 1, 2019 1:31:07 PM

Yes. Per IRS Publication 527, Chapter 2, page 7: The following settlement fees and closing costs for buying the property are part of your basis in the property

  • Abstract fees.
  • Charges for installing utility services.
  • Legal fees.
  • Recording fees.
  • Surveys.
  • Transfer taxes.
  • Title insurance.
  • Any amounts the seller owes that you agree to pay, such as back taxes or interest, recording or mortgage fees, charges for improvements or repairs, and sales commissions.

Related information:

Returning Member
Oct 15, 2020 9:15:23 AM

What about closing costs when SELLING. I know its supposed to end up as part of From 4797,2f, but where do I add it in Turbo tax so that it ends up there?