1099 s

[thetaxman2200]

Good Afternoon,

I have a client who sold a house they inherited, I figured stepped up basis based on FMV at time of death. My question can I add the closing cost to the basis of Schedule D?

Any advice would be greatfull

[Jiggers]

Good Afternoon,

I have a client who sold a house they inherited, I figured stepped up basis based on FMV at time of death. My question can I add the closing cost to the basis of Schedule D?

Any advice would be greatfull

Yes, assuming it wasn't rented out after they inherited it or used it for personal purposes.

[Burke]

Almost all selling costs would be eligible to add to basis, but you need to review the settlement statement to determine if any mortgage payoff or real estate taxes were accounted for. The real estate taxes may be deductible outright if the TP can itemize. (Check for pro-rated amount and adjust if necessary for payments/credits.) The mortgage would not be considered.
Don't just put down the total of "closing costs."