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?

[HelenaC · Accepted solution]

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:

• I sold my rental property. How do I report that?

[DJBoop]

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?