Adjust cost basis after a refinance

Forum|Forum|3 years ago
February 27, 2023
2 replies
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Hello all, We sold our primary residence in 2022 and bought our new primary residence. I am attempting to input the information from the sale of our previous home and have come across the adjusted cost basis section. I began entering information from our original purchase, but then realized we did a cash out refinance in 2021. Do I report the refinance information or do I report the original sale information?

Bsch4477

Employee

The refinance doesn’t affect your cost basis which is what you paid for the home plus any capital improvements.

Vanessa A

You report your original sale information. You will not include any bank fees or mortgage fees or points in the original cost or appraisal fees, mortgage insurance or costs to obtain the mortgage.

You can include title fees, recording fees, legal fees and fees you paid on behalf of the seller when you purchased the house, as well as major improvements to the home such as a new roof or new deck.

Any fees you incurred during the refinance period are not deductible.

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