topic Can we add government recording & transfer charges from sale of 2nd home to our cost basis? in Deductions & credits

Can we add government recording & transfer charges from sale of 2nd home to our cost basis?

bethdajo — Tue, 04 Jun 2019 19:40:53 GMT

In 2017 we sold a 2nd home bought in 1985 and have a capital gain of $200k. We didn't use a real estate agent for the sale. On the settlement statement it lists government recording & transfer charges that include POA recording fee to title company, tax stamp for county deed and state deed to the county treasurer. Can these costs be added to our cost basis?

Yes, the closing costs on the purchase are added to the b...

MichaelDC — Tue, 04 Jun 2019 19:40:55 GMT

Yes, the closing costs on the purchase are added to the basis. You can also deduct selling expenses from the sales price (gross proceeds). Almost all closing costs can be listed. Sales expenses are listed in the sellers column of your settlement statement and include:

commissions
appraisal fees
broker's fees
legal fees
advertising fees
home inspection reports
title insurance
transfer taxes or fees
geological surveys
loan charges (points) or other fees paid on the buyer's behalf
any fees for a service that helped you sell your home without a broker (listing fees, promotional fliers, etc.)

Sales expenses do not include:

mortgage payoffs
home equity loan payoffs
rent-back costs
payoff to creditors
property taxes
home owner association fees

Please feel free to post any additional details or questions in the comment section.

Re: Yes, the closing costs on the purchase are added to the b...

Rocok — Thu, 20 Feb 2020 00:23:08 GMT

Hi MichaelDC,

I bought house 2019, paid lots tax,

where fill following item to 2019 Deduction? I cannot find form in "Your Home"

Government Recording and Transfer Charges
City Transfer Tax to Director of Finance
State Transfer Tax to Circuit Court for Baltimore City
Recording Fees (Deed) to Circuit Court for Baltimore City
Recording Fees (Mortgage) to Circuit Court for Baltimore City
State Recordation Tax w/ Exmpt to Director of Finance

Thanks.

Re: Yes, the closing costs on the purchase are added to the b...

ThomasM125 — Thu, 20 Feb 2020 04:31:41 GMT

Those expenses are not deductible on your tax return when you purchase a house. They can be added to the cost of the house so that when you sell it someday, you can subtract them from the sale amount to reduce your potential taxable gain on the sale of the house.

topic Can we add government recording &amp; transfer charges from sale of 2nd home to our cost basis? in Deductions & credits

Can we add government recording & transfer charges from sale of 2nd home to our cost basis?

Yes, the closing costs on the purchase are added to the b...

Re: Yes, the closing costs on the purchase are added to the b...

Re: Yes, the closing costs on the purchase are added to the b...

topic Can we add government recording & transfer charges from sale of 2nd home to our cost basis? in Deductions & credits