Hello,
Thank you for your valuable input.
Of course, I know how much we received for the house; it only happened 6 months ago. Even though nobody sent us any form (when I asked the RE agent, she said, "I don't know and we do not do it")
I do not have any records of the purchase of the house. I know that the attorneys who did the closing must have the records and, if necessary, IRS can reach out to them. Frankly, I don't even remember how much we spent on the lawyers when purchasing the house (many, many years ago).
I do have some records of the Capital Improvements and I don't have many other records. As far as the permits, the contractors were supposed to obtain them. If they did, nobody knows. I do know that some contractors charge the residents for the permits but pocket the money (such is the business).
The bottom line, I now know how to enter the Capital Improvements cost (simply add the number to the purchased price). And then see if IRS decides to audit or not.
Again, thank you.
