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Cost basis when selling a house - settlement fees and closing costs

When you sell a house, you can add to the basis certain settlement fees and closing costs that you paid when buying the house. There's a small list of such fees in Pubs 523 and 530 that includes recording fees, transfer taxes, and owner's title insurance among others.

Question 1: Can you add to the basis similar fees and costs that you pay when refinancing?

Question 2: Is there a more precise list somewhere of what can be added to the basis? I found

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but I'm not sure if it's trustworthy. It says that appraisal costs are added to the basis, which is flatly contradicted by the IRS pubs.

Thanks

Reply to
Scott S.
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None of the fees incurred to refinance get added to basis.

I wouldn't call the list in Pub 523 "a small list." It's pretty comprehensive.

Pub 523 actually says that you can't add to basis the cost of an appraisal "required by a lender" in order to obtain your loan. The pub is correct as fees to obtain financing don't get added to basis.

The block of entries in the 800 series on a HUD-1 Settlement Statement are all fees payable in connection with a loan. As such, they would not get added to basis. Line 805 identified at Taxslayer as Inspection Fee is the Lender's Inspection Fee. Line

803 Appraisal Fee is by definition the fee required by the lender.

The cost of an appraisal that is not required by a lender to obtain financing may be added to basis.

Reply to
Alan

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