Are the county property taxes, county excise tax, real estate commission, escrow fee, and title insurance eligible expenses when selling a house?

[gordyjohnson1785]

I sold an inherited property and want to know if I can claim these expenses on my federal taxes this year.

[gordyjohnson1785]

I'm the OP.  We rented the house out, we never lived there.

[DianeW777]

See the list of items below that can be considered as selling expenses and those that cannot. Keep in mind that inherited property is always considered as being held long term.  Be sure to select that when you enter the sale. If you did not live in this as your main home see the information for reporting below.

Do not use any mortgage interest, real estate or school taxes, local or city taxes.  Transfer tax is a separate and identifiable expense of purchasing a property.

• See IRS Publication 551 (pages 2 & 3)

Government Recording and Transfer Charges 

• Recording fees
• Title Charges
• Lenders Title Policy
• Settlement or Closing Fee
• MLC  - Assuming it means Municipal Lean Certificate
• Title Exam
• Owners title Insurance

You can include these closing costs and add them to the cost basis of the property as noted above.

Loan charges - Loan charges are part of the loan, not cost basis

• Application fees
• Lender fees
• Appraisal Fee
• Inspection Fee
• Condo Questionnaire
• Credit Report
• Debt Report

You can't include in your basis the fees and costs for getting a loan on property.

If this is considered investment property (it was not your main home), report the sale using the steps below:

1. Under Wages & Income scroll to Investments & Savings
2. Select Start/Revisit beside Stocks, Cryptocurrency, Mutual Funds, Bonds, Other 
3. Select Add Investments or continue to go through the screens to select 'Other' > Continue
4. Begin to enter the sale description >  Under Type select Other > Under How did you receive select 'I Inherited it' (if applicable)
5. For TurboTax Desktop you would enter the description 'Inherited Property' and select 'Long Term' as the hold period
6. Enter your sale date and 'Various' as the Acquired date
7. Continue to complete the screens until you arrive back at the Wages & Income main page.

Please update if this property was on your return as a rental property in 2024.  Depreciation must be a factor for the cost basis by reducing it for that amount.

@gordyjohnson1785

[Edited: 02/15/2025 | 3:53 PM PST]

[gordyjohnson1785]

Thank you for the helpful response. 

Does the escrow fee count as a "settlement or closing fee"?

I see that some people say that the real estate commission is deductible, but I assume that would be if I lived in the house as opposed to selling as an investment property.  Is that correct?

[PaulaM]

Escrow fees are settlement fees. Real estate commissions paid are a selling expense for an investment property and listed along with other sale details in the Investment section.