Received 1099-s w/ land taxes listed, can taxes be added to basis of land? Can title & escrow charges, & recording charges from sale of land be added to basis of land?

[plmqaz0]

Want to know if property taxes listed on 1099-s from sale of raw land can be added to basis of the land; can the Title Company's title & escrow charges, & recording charges be added to basis of the land? 

[DS30 · Accepted solution]

It depends.

The amount of property taxes that you paid on the sale will not be added to the basis in the property. Instead you will be able to deduct these additional property taxes on Schedule A as other property taxes (see screenshot)

As for other closing costs, instead of increasing the basis in your sold property, you are allowed to deduct from the sales price almost any type of selling expenses, provided that they don’t physically affect the property. Such expenses may include:

• advertising
• 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
• recording fees (if paid by the seller)
• costs of removing title clouds
• settlement fees
• title search fees, and
• transfer or stamp taxes charged by city, county, or state governments