Selling Costs

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If when you sell your home, you realize a taxable gain even after the exclusion, you can reduce your gain with selling costs. Your gain is your home's selling price, minus deductible closing costs, minus your basis. Your basis is the original purchase price, plus capital improvements, minus any depreciation.


Real estate broker's commissions, title insurance, legal fees, administrative costs and inspection fees are all considered selling costs. Selling costs can also include items otherwise considered repairs—painting, wallpapering, planting flowers, maintenance and the like—provided you complete them within 90 days of your sale and provided they were completed to make the home more saleable.

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