Closing costs on sale of rental (cap gains exempt)

[Max M.]

Good morning,

I'm selling a rental property which is excluded from capital gains tax under the primary residence exemption. We have substantial closing costs on the sale, primarily transfer tax and realtors' commissions. I've seen conflicting information on when/whether these costs are deductible — most, including Pub. 536, seem to apply to the *purchase* of a rental property, and resources that deal with sales have focused heavily on either straight-up sales with capital gains taxes or on 1031 exchanges with deferred gains. In this case we are selling without any cap gains tax, deferred or otherwise. What I have found through Google and forum searches is split between "everything is deductible" to "you just eat this cost."

Has anyone here closed on a similar sale? Were you able to put closing costs towards a NOL?