We sold & bought a home in 2019. In figuring if we had to report the sale, I did not have the original info on the home we sold. I made educated guesses; is this ok?

[kidapollos59]

We had owned the home we sold for 25 years. The final gain was nowhere close to the max.

[GiseleD]

It's best not to make educated guesses it at all possible. What information were you lacking on the original home? Please provide details--we may be able to point you in a direction where you can find official records of this info. 

[NCperson]

if you can't remember what you purchased the house for, call the county records office.  They may have the record of the sales price.....or if there was a transfer tax, they can back into what the sales price would have been based on the tax paid. 

While it's not best to guess, on the other hand there is the issue of materiality.  If you are married and you sold the home for under $500,000 and you qualify for the $500,000 exclusion, just write down $0 as the cost basis- it doesn't matter - there is no tax to be paid, regardless of the true purchase price.

[kidapollos59]

Friend,

Thanks for the info! I think I was correct on the sale price. We were WAY under the $500,000 mark.

Again, Thanks!

[kidapollos59]

GiseleD,

Not being knowledgeable about such things, I believe I shredded the original paperwork from the home sale. Over the 24 year we owned the home, we refinanced it several times. I do remember the title company. What do you suggest?

Thanks!

Scott D. Mattson

[RobertG]

The information from the title company will probably not help you.

Refinancing does not figure into the calculation of the gain.

All you need to know is what your paid for the house originally, plus the cost of major improvements and additions.  And you need to know the sale price and expenses of sale.

Keep in mind that if you are certain that the gain on the sale is under the $250,000/$500,000 limit, none of the gain is taxable.