Solved: If I sold my home this year, do I use the previously refinanced purchase price as the "Original Cost" for the adjusted cost basis?
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If I sold my home this year, do I use the previously refinanced purchase price as the "Original Cost" for the adjusted cost basis?

 
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If I sold my home this year, do I use the previously refinanced purchase price as the "Original Cost" for the adjusted cost basis?

The basis for your home would be the Original Cost, not the refinanced purchase price.

Your Original Cost basis may be adjusted for various items after you acquired it such as: 

  • original cost, including sales tax, purchase expenses, commissions, etc. (from the original closing statement, if available)
  • permanent home improvements
  • nondeductible assessments for improvements (sidewalks, utilities, etc.)
  • depreciation claimed or allowable (if you had an office in your home or rented the home)
  • casualty and theft losses deducted 
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Highlighted
Level 10

If I sold my home this year, do I use the previously refinanced purchase price as the "Original Cost" for the adjusted cost basis?

The basis for your home would be the Original Cost, not the refinanced purchase price.

Your Original Cost basis may be adjusted for various items after you acquired it such as: 

  • original cost, including sales tax, purchase expenses, commissions, etc. (from the original closing statement, if available)
  • permanent home improvements
  • nondeductible assessments for improvements (sidewalks, utilities, etc.)
  • depreciation claimed or allowable (if you had an office in your home or rented the home)
  • casualty and theft losses deducted 
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

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