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Diligently. Your cost basis is the cost of the land, materials, and labor you paid for. Plus other required legal costs such as for permits, inspections and surveys.
If you don't have your records, you have a problem. If audited, the IRS doesn't have to give you credit for anything you can't prove.
Taxpayers should always save records related to the purchase or construction of a home for the entire time they own it plus at least seven years after they sell.
Diligently. Your cost basis is the cost of the land, materials, and labor you paid for. Plus other required legal costs such as for permits, inspections and surveys.
If you don't have your records, you have a problem. If audited, the IRS doesn't have to give you credit for anything you can't prove.
Taxpayers should always save records related to the purchase or construction of a home for the entire time they own it plus at least seven years after they sell.
What if the property owner (the one who built it) bought a mobile home to put on the property while he was building. Would the cost of the mobile home go into basis? I am leaning that it wouldn't because the mobile home was not a structural cost, and if we cannot count the owner's assumed labor costs, why would we include the cost of their mobile home.
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