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[Information added 11:20 am PST 4-18-17]
Adjusted basis is cost basis plus increases and minus decreases. Increase the basis of any property by all items properly added to a capital account. These include the cost of any improvements having a useful life of more than 1 year.
The following items are some of the settlement fees or closing costs you can include in the basis of your property when you purchased it and when you sold it.
See the screenshot below for more examples.
Some settlement fees and closing costs you can’t include in your basis are:
Fire insurance premiums,
Rent for occupancy of the house before closing,
Charges for utilities or other services related to occupancy of the house before closing,
Any fee or cost that you deducted as a moving expense (allowed for certain fees and costs before 1994),
Charges connected with getting a mortgage loan, such as:
Mortgage insurance premiums (including funding fees connected with loans guaranteed by the Department of Veterans Affairs),
Loan assumption fees,
Cost of a credit report,
Fee for an appraisal required by a lender, and
Fees for refinancing a mortgage.
See Publication 551 (Rev. December 2016) - IRS.gov for additional information that may apply to your particular situation
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