You would deduct the selling expenses from the proceeds....

Can I adjust the cost basis of an inherited home by the Escrow fees and taxes itemized on a "Seller's Closing Statement"? Are these "Selling Expenses" in Turbotax?

This house was inherited due to death. The FMV at time of death was $500K. The selling price was $505K. The capital gain is $5K. Escrow taxes/fees/commissions, etc are about $33K. Can I adjust the cost basis by these expenses, which will in turn, give me a capital loss? The area to report "Selling Expenses" in Turbotax notes "These are not common..."

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You would deduct the selling expenses from the proceeds. It would net the same result. Your basis would be $500k and your proceeds would be $472K which would net a capital loss.

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