You are allowed to deduct from the sales price selling expenses, such as:
- appraisal fees
- attorney fees
- closing fees
- document preparation fees
- escrow fees
- mortgage satisfaction fees
- notary fees
- points paid by seller to obtain financing for buyer
- real estate broker's commission
You can increase your cost basis by the amount of any improvements (not repairs) you made to the property.
Things like utility bills, pest control, etc are not deductible.
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if it was your residence and never rented only costs associated with selling are deductible as a sales expense. utilities, water bills, telephone bills, HOA fees, assessments, real estate taxes are not
selling expenses could include (if charged to the seller)