@Carl wrote:
Another option might be to use the taxable value from the local appraisal district when it was completed.
Actually, that's not only the worst option, but can only be used as the absolute last resort when there is no other possible way to determine the cost basis.
As mentioned elsewhere in this thread, the appraisal (by the local taxing district) is used for fair market value (assessed value for property tax purposes) and should not be used for the cost basis as reported to the IRS.
The IRS does not have to accept a property tax appraisal as a substitute for cost basis and most likely will not.
