I sold my house. I will need to determine the basis of my property. Can I include the below escrow costs in the cost basis of the property?
Escrow charges:
Escrow fee to Title company
Loan Tie-In Fee
Overnight delivery fee
Courier Fee
E-mail Document Fee
The IRS states the below can be used but there is NO mention of the various escrow fee:
Your cost also includes amounts you pay for the following items.
• Sales tax.
• Freight.
• Installation and testing.
• Excise taxes.
• Legal and accounting fees (when they must be capitalized).
• Revenue stamps.
• Recording fees.
• Real estate taxes (if assumed for the seller).
You may also have to capitalize (add to basis) certain other costs related to buying or producing property.
Basis may also include the following items:
The following items are some of the settlement fees or closing costs you can include in the basis of your property. • Abstract fees (abstract of title fees).
• Charges for installing utility services.
• Legal fees (including title search and preparation of the sales contract and deed).
• Recording fees.
• Surveys.
• Transfer taxes.
• Owner's title insurance.
• Any amounts the seller owes that you agree to pay, such as back taxes or interest, recording or mortgage fees, charges for improvements or repairs, and sales commissions.
The following items are some of the settlement fees or closing costs you can include in the basis of your property. Items you agree to pay, such as back taxes or interest, recording or mortgage fees, charges for improvements or repairs, and sales commissions.
Generally, these expenses can be deducted as selling expenses:
This link IRS Basis of Assets has information you may find useful.
So can I use the below escrow fees?
Escrow charges:
Escrow fee to Title company
Loan Tie-In Fee
Overnight delivery fee
Courier Fee
E-mail Document Fee