Calculating Cost Basis

[tna035]

I need to report my home sale as I do not qualify for the capital gains exclusion. The purchase price on the home was $240K, per the closing disclosure. I had about $2K of applicable buyer closing costs to add to the cost basis (recording fees, owners title insurance, etc) and $7K of home improvements. However, I also saw in my Closing Disclosure from when I bought, that I received $4K in "sellers credits." No further explanation is given. Do I need to reduce my cost basis by that $4K? Or is my adjusted cost basis from purchasing the home $240K+$2K+$7K=$249K and do not need to decrease by any "seller credits"?

[Opus 17]

The sellers credit reduces the selling price.  If you paid $249K but had a credit of $4K (the seller paid some of your closing costs) that is treated as though the selling price was really $245K.