I sold my home last year.
My closing statement has the following entries:
Adjustment for items unpaid by seller
213. Selling broker credit buyer Non Recurring Closing Cost
214. Seller credit buyer Non Recurring Closing Cost
Is it correct to add these 2 values in the "Seller's Expenses You Paid" field of the Adjusted Cost Basis EasyGuide tool?
Thanks
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I'm not sure what "Selling broker credit buyer Non Recurring Closing Cost" is. If the real estate agent is reducing their fee, that does not reduce your selling price or increase your basis.
As far as "Seller credit buyer Non Recurring Closing Cost", if you give the buyer a credit, that technically reduces your selling price instead of increasing the cost basis. But the net effect of the calculation is the same if you add it to the basis instead of reducing the selling price, it reduces your gain either way.
(For example, if the official selling price is $100,000 and you give the buyer a $5000 credit toward their closing costs, then your actual selling price is $95,000.)
Thanks
The closing cost statement was a HUD-1.
Thanks I added them to the cost basis.
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