in 2002 I built my own home. I bought property and subbed it out myself. I did have to borrow money from the bank and the mortgage was $115,000. The 2013 I built a second home that is now on my primary residence,. the original property is now an investment property. I am thinking about selling the property in the next few years. Obviously I will have to pay long-term capital gains. I can’t remember exactly what the total cost of the house was in 2002. There is no record of it anywhere but I think it was around $220,000. Let’s just say I sell the house for $520,000. That will give me a long-term capital gains of $300,000. do I need to have proof of that or is it a situation where the IRS will not challenge it?
