Question

Adjusted Cost Basis for seller

Forum|Forum|5 years ago
March 16, 2021
1 reply
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Can the costs (survey, legal, title search, appraisal) of selling real estate (vacant land) be added to the adjusted basis?

Not A Product Question

ColeenD3

Yes.

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.

Pub 551

W

WaltC3Author

Thanks for your detailed response ColeenD3.

It makes sense to me, as the seller, that any costs related to selling the property would add to the seller's basis. However, Pub 551 always refers to the BUYERS' being able to adjust the basis of their purchase for buying costs (which you listed in your response to me), and never to how the SELLER can add the costs of selling to their basis. There aren't even any examples from the sellers' perspective.

Am I reading Pub 551 to narrowly?

WaltC3