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Not applicable
posted Jun 6, 2019 8:26:41 AM

Which items can be added to the cost basis of a home?

I understand that I can adjust the home cost basis, which can be calculated by adding to the condo purchase price certain expenses that were incurred during the purchase of the condo. What can be added to the cost basis of the home from the buyer's settlement statement?

On the buyer’s settlement statement, I have the following items:

Lender Fee

HOA Survey

Appraisal Fee

Credit Report Fee

Sewer Lateral Inspection

Certificate of Insurance Fee

Transfer Fee to HOA (for transfer of ownership)

Escrow Fees to the Title Company

Loan Tie-In Fee to Title Company

Notary Fees

Title Charges

Endorsements to Title Company (Environmental Protection Lien and Condominium)

Recording Fees

City Transfer Taxes


0 2 3765
2 Replies
Expert Alumni
Jun 6, 2019 8:26:42 AM

You add all these fees and costs to your purchase price to arrive at your cost basis.

New Member
Jun 6, 2019 8:26:44 AM

According to current IRS documents, some of the items listed above, such as the  Credit Report costs and fees for an appraisal required by a lender, should NOT be included when calculating a home cost basis.  Best to look at IRS Publication 530.