There are several ways you could support or substantiate the repairs or renovations without a receipt. You could use the canceled check showing the date, payee, and amount paid. You could use the bank statement and check book register showing the same details. If you paid by credit card the credit card statement showing the initial charge would also work.
You could also use a sales brochure with a price quote or estimate.
If the contractor took out a building permit, you could use that amount .
Loan documents if you took out a loan for the work.
If your property tax base went up because of the work you could use that to estimate the value of the work. In California the tax base value may only rise 2% per year unless you add value to you property then the State may also increase the tax base by the value of the work. If you spent $10,000 to repair and replace you roof then you property tax base goes up 2% of last years value plus $10,000.
For your deduction whatever you use document how you determined the amount. if possible make a copy of the record you used. In government we would call this a "Memorandum for Record" or MFR. On a sheet of paper you would state the facts and your conclusion. For my 20023 tax return for the basis of the property at 123 Main Street sold on date 2023, I used the following:
the price paid from Zillow showing the previous purchase price of $100,000 on Date 2003.
We repainted the house using Smith Brothers painting on Date 2010 for $2,000 from our check book register showing check number 1003 dated Date 2010 to Smith Brothers or John Smith,
We remodeled the house on Date 2015 from our check book register for $15,000 from check book register and building permit data from city of XXX .
The other issue is materiality. If you spent $200 for paint and supplies to repaint your house 20 years ago; it really doesn't matter about the receipts if your audited. Your statement should suffice. Your deduction in that case is $200. If you spent $20,000 then that amount is material and some records would be expected. If you spent $200,000 then there should be all types of records showing the payment.
Please also note that the State also reviews your return and they will also want to review any major property improvement s against their records. I'm from California. So if you claim $200,000 from a remodel 10 or 15 years ago and the amount was not added to the taxable property the State of CA would also come after you for additional back property taxes. Sometimes it may be best not to report or deduct such improvements.
If all else fails hand the agent a floppy disk and say the 1995 records are all here. - ok bad tax joke
