Simple formula ... purchase price + cost to buy + improvements + cost to sell = cost basis
Proof of costs are only needed in the case of an audit later.
Understand but the question is, I don't have 1099-S type document since it was foreign real estate sale.
should I include the real estate broker and improvements costs in the cost basis since I don't have proof for them.. I assume if I case of audit later and if I cant produce the proof for certain items, IRS imposes heavy penalty. Any advice is much appreciated..
