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Home Tax Basis Calculation

1,244 Views | 1 Replies | Last: 4 yr ago by Deluxe
Deluxe
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AG
For any experienced folks out there:

I've been trying to calculate my home tax basis because I might have to sell it before the two year exclusion term is up. I'm pretty comfortable with most of the calculation but still a little unclear on which closing fees I can add to my basis and which ones I can't. Anyone know which of the following fees (if any) from my settlement statement can be added to my basis?

Closing Fee to Lender
Loan Origination Fee to Lender
Processing Fee to Lender
Tax Service Fee to Lender
Underwriting Fee to Lender
Wire Fee to Lender
Appraisal Fee
Credit Report Fee
Flood Certification
Attorney Document Prep
Aggregate Adjustment to Lender

Thanks!
lockett93
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AG
Bottom of page 2. https://www.irs.gov/pub/irs-pdf/p551.pdf

Basically you get all fees that were required if you were paying cash and not getting a loan. And you can't count anything the seller paid, or that was a prepay of future taxes/insurance.

Deluxe
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AG
Thanks Lockett. That's a good rule of thumb.
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