IRS Publication 523 — Selling Your Home

c. Any legal fees … c. d. Any mortgage points or other loan charges you paid that would normally have been the buyer’s responsibility … d. e. Any other fees or costs to sell your home … e. f. Add lines 2a through 2e. These are your selling expenses … f.

3. Figure your “amount realized” (sale price minus selling expenses). Line 1f minus line 2f … 3.

4. Determine your “total basis” (the total amount you invested in your home). This includes what you paid for your home as well as other money you may have spent that added to its value. a. The amount you paid for your home (or if you built your home, the cost of the land). Include any down payment and any amount you borrowed to pay for the home. For cooperative apartments, include the value of the corporation stock you purchased. If you acquired your home through inheritance, gift, bargain sale, trade, or anything except a fair market purchase, see Basis Adjustments—Details and Exceptions … a. b. Any settlement fees or closing costs you paid when you bought your home, except for financing-related costs (such as seller-paid points). The settlement statement should list the fees related to buying the home. See Basis Adjustments—Details and Exceptions and Fees and Closing Costs … b. c. Any real estate taxes or other costs you paid on behalf of the seller you bought your home from (and for which the seller never paid you back) … c. d. Any amounts you spent on construction or other improvements that are still part of your home at the time of sale (not including costs of maintenance and repairs). See Basis Adjustments—Details and Exceptions … d. e. Any amounts you spent to repair damage to your home or the land on which it sits … e. f. Any special assessments for local improvements (such as special tax or condominium association assessments that aren’t merely for repairs or maintenance) … f. g. Add lines 4a through 4f. This is your total basis … g. Publication 523 (2025) 15