Hi there!
You said the property was deeded to you but didn't explain the circumstances and that makes a big difference. If for example, the property was deeded to you as a result of you inheriting it from someone who passed away and left it to you, you get the benefit of a stepped up basis meaning your basis is the fair market value of the property on the date of death.
If, for another example, you were deeded the property by a friend or relative as a gift, you are in the shoes of the giver. Your basis is the giver's basis. (Cost of property 40 years ago plus improvements, less insurance payouts, etc.). You would need to get the info from the person who gave you the property.
In terms of "approximating", you need to be prepared to justify your figures in case of an audit remembering that IRS may have info on the property from the prior owner's tax returns. You need to have some justification, back-up or evidence for the figures you will use on your return.
If it was a gift and the giver filed a Gift Tax Return ask that person for a copy as it will have the information that was submitted to the IRS as to basis.
If you don't have the necessary information and cannot obtain it from the prior owner or their family, you can try checking public records in the county to see if you can at least determine the original cost and date of purchase by prior owner. Then you'd need to know if it was used as their main home or as a rental. If it was a rental for any part of the time the prior owner owned it, you need to figure depreciation and any improvements that were depreciated, etc. If it was always the main home, you need to know about capital improvements.
The good news is you have some time before you have to file your 2024 return so you can do some research on these issues. Good luck!
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