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..."
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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