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afchas
New Member

Purchased land, built house >30 years ago, sold 2016. Have all info to complete capital gains section for the sale. Have little paperwork for original construction cost.

I know what the original costs of construction were, including out of pocket funds, but do not have the paperwork/receipts to prove it in case of audit. Prior to this build the rule was "primary residence to primary residence rollover" was acceptable. Closing attorney retired and firm has purged records from that far back; origination bank no longer exists; builder has closed office. I keep good records, but have no paperwork from 30 yrs ago comparable to what I received when I sold the property. PLEASE HELP!

1 Reply
IreneS
Intuit Alumni

Purchased land, built house >30 years ago, sold 2016. Have all info to complete capital gains section for the sale. Have little paperwork for original construction cost.

Don't worry about the paperwork to back up your calculations.  I doubt the IRS would question your figures on the cost basis of a house built 30 years ago.

The sale of a principal residence is generally not reported on a taxpayer's return unless the taxpayer:

  • Has a gain and does not qualify to exclude it all.
  • Has a gain and elects not to exclude it.
  • Receives a Form 1099-s for the sale.

Gain of up to $250,000 ($500,000 for married filing jointly) is excluded from tax.

 

If you wish to enter the sale of your home in TurboTax to determine if there was a gain, please follow these steps:

  1. Click on Federal Taxes [Personal in Home & Bsns edition] > Wages & Income
  2. Scroll down to the Less Common Income section and click on the Start/Revisit box next to Sale of Home (gain or loss).  [See Screenshot #1, below.]
  3. On the next screen, Sale of Your Main Home, click Yes.
  4. Continue through the screens, entering the requested information.

TurboTax will calculate the gain on your property and the amount that can be excluded from tax.


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