Hello,
I took out a 31 year single construction to 30-yr mortgage to build my primary residence. I was able to take money out to pay bills for the construction, paying only interest. I ended up with a final balance that was now a interest and primary 30 year loan. Same Note.
I have lived in it for over 3 years and know I qualify for the $500k capital gains deduction. I didn't keep receipts well. I have read where one way to determine my cost basis is if I had a loan to buy the house, that would be the cost basis plus improvements. So, would I be able to use the first mortgage (construction to fixed mortgage) loan as that cost basis? I do I have to come up with reciepts or examples of FMV for parts of the construction?
Thank you!
