[retiredguy123]

Originally Posted by metoo21

So for those that have done this do you calculate "profit" as the difference from your original cost + the new seller fees and the selling price?
In other words assume

Original asking price $200,000 and sold for $200,000
Your Buyers closing cost $10,000
Actual cost to buyer was $210,000

Now when selling, do you use the $210,000 as the original price/cost?

Then when you sell at a list price of $250,000 and then pay the your sellers closing costs of $15,000, you actually get $235,000 cash so you get a $25,000 profit. Or do you count the $10,000 of the original buyer's cost in the equation at all?

It depends. The buyer's closing costs are typically not included in the cost basis, especially those related to getting a loan. The seller's costs typically are included in reducing the taxable gain if they are related to getting the house sold. I would suggest using TurboTax to assist you in listing every cost to see which are and are not included. When you sell a house, you will get a 1099B from the closing company declaring the proceeds that you received from the sale. That is the amount reported to the IRS, but it does not include your cost basis that you will subtract from the sale proceeds.