Originally Posted by littleb
I have read that when you sell land the real estate fee increases the cost basis when determining how much you owe in capital gains. I need to make sure this is correct since we need to keep our income low this year due to the ACA income rules.
Can anyone confirm this?
By real estate fee I assume that you mean the realtor's commission on the sale.
If so, then the impact is to reduce the gain.... although technically it is a selling cost and not an increase in basis.
So your capital gain would be what you sell it for, less selling costs, less basis.