@rjs wrote:
@Opus 17 wrote:
I can't follow your story. You first said you bought a property with one home . . .
@Opus 17
The OP did not buy a property with one home. He bought an empty lot and built a home on it in 2002. He lived in the home for some years, then moved to a new primary home that he built in 2013.
I read "subbed" as subdivided, not subcontracted.
In any case, everything I said (and you said) about basis is still true. If the basis can't be proven, they are rolling the dice that they won't get audited. If audited, the IRS probably can't assign a zero basis (since you can't build a house without paying something for materials), but they don't have to accept the taxpayer's guess, either.
