We built a vacation home 14 years ago, and sold it last year. We have information on the cost of the property, but no longer have detailed records of what we paid the contrator to build it. We have an estimate of $250K. What are are options for estimating

[jerry2000 · Accepted solution]

There really aren't any options for estimating. If the IRS decides to audit you , you must be able to prove whatever value you claim as the basis. If you have no records to prove a basis then the IRS position will be that the basis is zero.