According to IRS Publication 523, taxpayers must calculate their home's adjusted basis to determine any gain or loss on the sale of the home. To figure the adjusted basis, taxpayers may use Worksheet 1, Adjusted Basis of Home Sold, below.

Caution: See the Worksheet 1 Instructions before you use this worksheet.
1.		Enter the purchase price of the home sold. (If you filed Form 2119 when you originally acquired that home to postpone gain on the sale of a previous home before May 7, 1997, enter the adjusted basis of the new home from that Form 2119.)		1. ______
2.		Seller paid points for home bought after 1990. (See Seller-paid points.) Do not include any seller-paid points you already subtracted to arrive at the amount entered on line 1		2. ______
3.		Subtract line 2 from line 1		3. ______
4.		Settlement fees or closing costs. (See Settlement fees or closing costs.) If line 1 includes the adjusted basis of the new home from Form 2119, go to line 6.
	a.	Abstract and recording fees	4a. ______
	b.	Legal fees (including title search and preparing documents)	4b. ______
	c.	Surveys	4c. ______
	d.	Title insurance	4d. ______
	e.	Transfer or stamp taxes	4e. ______