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aetm505
New Member

Can I list all of the title costs as expenses on the sale of my house

 
1 Best answer

Accepted Solutions
MargaretL
Expert Alumni

Can I list all of the title costs as expenses on the sale of my house

Almost all closing costs can be listed. Sales expenses are listed in the sellers column of your settlement statement and include:

  • commissions
  • appraisal fees
  • broker's fees
  • legal fees
  • advertising fees
  • home inspection reports
  • title insurance
  • transfer taxes or fees
  • geological surveys
  • loan charges (points) or other fees paid on the buyer's behalf
  • any fees for a service that helped you sell your home without a broker (listing fees, promotional fliers, etc.) 

Sales expenses do not include:

  • mortgage payoffs
  • home equity loan payoffs
  • rent-back costs
  • payoff to creditors
  • property taxes
  • home owner association fees

View solution in original post

3 Replies
MargaretL
Expert Alumni

Can I list all of the title costs as expenses on the sale of my house

Almost all closing costs can be listed. Sales expenses are listed in the sellers column of your settlement statement and include:

  • commissions
  • appraisal fees
  • broker's fees
  • legal fees
  • advertising fees
  • home inspection reports
  • title insurance
  • transfer taxes or fees
  • geological surveys
  • loan charges (points) or other fees paid on the buyer's behalf
  • any fees for a service that helped you sell your home without a broker (listing fees, promotional fliers, etc.) 

Sales expenses do not include:

  • mortgage payoffs
  • home equity loan payoffs
  • rent-back costs
  • payoff to creditors
  • property taxes
  • home owner association fees
Christis
New Member

Can I list all of the title costs as expenses on the sale of my house

I just want to clarify.  I sold my rental property in Aug 2019. Can I write off all of the title insurance charges from my settlement statement? I also paid $6000 towards the borrowers closing costs.  Can I write them off as well? 

LindaB1993
Expert Alumni

Can I list all of the title costs as expenses on the sale of my house

Generally, the only deductible closing costs  in the year of disposition for your rental property are those for interest and deductible real estate taxes.

 

Other settlement fees and closing costs for selling the property become additions to your basis in the property.  Your closing costs does include the $6000 paid on behalf of the purchaser. 

 

The basis of property you buy is generally its cost.  Your original cost/basis in property is adjusted (increased or decreased) by certain events. Capital improvements to the property, increase your basis. Deductions for depreciation or casualty losses, reduce the basis.  

 

Your basis is your investment in an asset which is the  amount used to determine your profit or loss when you sell it. The higher your basis, the less gain there is to be taxed resulting in a lower tax bill.

 

Please view the following link for a complete list:

Closing costs to add to basis of rental Property. 

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