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1122ginamarie
New Member

Can I adjust the cost basis of an inherited home by the Escrow fees and taxes itemized on a "Seller's Closing Statement"? Are these "Selling Expenses" in Turbotax?

This house was inherited due to death.  The FMV at time of death was $500K.  The selling price was $505K.  The capital gain is $5K.  Escrow taxes/fees/commissions, etc are about $33K.  Can I adjust the cost basis by these expenses, which will in turn, give me a capital loss?  The area to report "Selling Expenses" in Turbotax notes "These are not common..." 

1 Reply
AlanT
Expert Alumni

Can I adjust the cost basis of an inherited home by the Escrow fees and taxes itemized on a "Seller's Closing Statement"? Are these "Selling Expenses" in Turbotax?

You would deduct the selling expenses from the proceeds.  It would net the same result.  Your basis would be $500k and your proceeds would be $472K which would net a capital loss. 

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