Regarding Adjusted Cost Basis for a home previously sold. Do you include Loan Origination fees from the original closing statement?

[KarenJ · Accepted solution]

No, loan origination fees for your principal residence were deductible in the year of purchase.  If it was a second home, then the points would be allocated over the life of the loan.

Closing costs from the purchase of your home should be added to the basis of your home as well as any improvements.

• Attorney fees in connection with obtaining property

• Commissions

• State stamp taxes and transfer taxes

• Tax service fees

• Title policy fees or title insurance