Very possible , they could look back at what houses were built for in that area in 2002? Get a pretty good idea? If I sell the house for 525,000 and my basis that I claim is $160,000 , I don't think they would argue with that as opposed to me saying my basis was say $300,000? Then claim $365,000 long term capital gains. The main question is this , if I didn't buy the house through a real state company , how will the IRS know the true basis?
