I sold my primary residence in 2021. I'm trying to populate the Adjusted Cost Basis information and my HUD1 doesn't clearly define the requested fields. What goes where?

[louiesdad1]

Abstract

[HelenC12]

Your adjusted cost basis is the total of everything you paid for the house - the original purchase price, fees and so on.

• Add to that the cost of all the improvements you have made over the years to get a grand total, which is known as the "adjusted basis."

You do not deduct the expenses of sale, except mortgage interest and real estate taxes, but you can add the amounts to the cost (basis) of your property. 

• Real estate taxes and mortgage interest can be deducted on Schedule A if you itemize.

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.

• Abstract fees (abstract of title fees); 
• Charges for installing utility services; 
• Legal fees (including title search and preparation of the sales contract and deed); 
• Recording fees;
•  Surveys; 
• Transfer taxes;
•  Owner's title insurance.  

See IRS Publication 551, Basis of Assets, page 2 and 3, Real Property, Settlement costs, for additional information that may apply to your particular situation.

Additional information: 

• Is the money I made from a home sale taxable?

[louiesdad1]

Thanks, that is helpful a bit, but I'm still unclear as to which lines on my HUD1 correlate to those previous mention that I need to populate in turbo tax. Can you clarify?

[JillS56]

The sections of the HUD1 that can be added to your basis if the cost is charged to the Seller are the following sections:

• 700.  Total Real Estate Brokerage Fees 
• 800. Items Payable in Connection with Loan
• 1100.   Title Charges
• 1200. Government Recording and Transfer Charges  (includes 1201 through 1206)
• 1300 Additional Settlement Charges 

@ HelenC12  h@HelenC12 Provided the following list.  I have added for you which section these costs might be located on the HUD1:

• Abstract fees (abstract of title fees) - 1100 Title Charges; 
• Charges for installing utility services - 1300 Additional Settlement Charges; 
• Legal fees (including title search and preparation of the sales contract and deed) 1100 Title Charges; 
• Recording fees - Government Recording and Transfer Charges;
•  Surveys - either Items Payable in Connection with the Loan; Title Charges or Additional Settlement Charges; 
• Transfer taxes - Government Recording and Transfer Charges;
•  Owner's title insurance - Title Charges