We were in process of buying a home in Dec. 2017. We didn't complete the purchase but paid earnest money and appraisal and inspection fees, should I add these?

[CathiM · Accepted solution]

You can add the closing costs to the purchase price of the home to increase your cost basis.  If and when you sell the home, this will help reduce a gain (or increase a loss). But unfortunately, the IRS does not have a deduction for those expenses on your tax return.