Can I include a home warranty as part of sales expenses for a sold home?

Unfortunately, the IRS will not allow you to deduct the cost of a home warranty as a selling expense when computing the gain/loss on a sale of your home.  

Here is what the IRS allows for Selling Expenses: 

Hello. I wanted to see if anything has changed as far as the rules on this question.  I recently sold a primary residence that I owned for less than 2 years.  The buyer demanded a home warranty as part of the contract after the home inspection phase.  My tax person said I CAN include the home warranty expense as part of my “selling expenses” to lessen my capital gains, along with me also giving the buyer a $5,000 seller credit towards her closing costs. I realize tax laws change from year to year so just wanted to see if this is why I am getting different guidance.   

No. There is no change to the tax law. Home warranties on personal residences are not deductible (much like you cannot deduct hazard insurance). They are deductible on income-producing property.

So if I sell an apartment building and the buyer requires me to buy a home warranty for each of the apartments, is this cost deductible?  If so, what tax category do I include it in?  

Thank you

If you are the seller and you buy a warranty policy for the new owners then that IS included in the cost of selling the property.    If you are the buyer and it is a personal residence there is no deduction to be taken.  

Thank you!!