I purchased a bank owned property (house) for the purpose of rehabbing and selling. For determining my adjusted cost basis, am I permitted to include the cost of utilities and insurance I paid during the time I owned the property. It was vacant the entire time and never put up for rent.

Thanks,
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No - your basis is your purchase price plus and capital improvements you may have made, less any depreciation you have claimed. You can not include maintenance and upkeep expenses, which include things like utilities, insurance, real estate taxes, and minor repairs.