Sale of Inherited Parents House

[Gail Aiken]

My brother and I inherited my mothers home in December of 2014 and sold one year later in December 2015.  We did not live in the house but it took us a year to clean out the house and basement.  We had an appraisal done after their death and house appraised for $72,000 and we sold for $70,000.  We had to pay $3000 in sellers concessions and other sellers expenses including commission added up to $6731 for total expenses of $9731.    Can these expenses be divided and added to our cost basis for a loss?  

[Steven Hamilton II]

So your basis is 72k  and you sold for 70, that is a 2k loss, plus you deduct closing costs etc.  So you actually will report a larger loss of $11,731 in this case.