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New Member
posted Jun 4, 2019 1:49:07 PM

We paid sellers legal fees for short sale

We bought a short sale home for our permanent residence. We paid 10K designated to the sellers attorney that handled the short sale. Is this deductible?

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1 Best answer
Level 5
Jun 4, 2019 1:49:09 PM

Unfortunately, it's not currently deductible.  However, it can be added to your cost basis to reduce any potential capital gains when you later sell the home. 

2 Replies
Level 5
Jun 4, 2019 1:49:09 PM

Unfortunately, it's not currently deductible.  However, it can be added to your cost basis to reduce any potential capital gains when you later sell the home. 

New Member
Jun 4, 2019 1:49:10 PM

Thank you