capital gains

Forum|Forum|3 years ago
November 16, 2022
1 reply
14 views

i built my second home, but i cannot find any proof of payments to contractors or receipts of materials I purchased to build the house. What can I do when I sell this house? Will the whole amount I sell the house be taxed as capital gains? I’ve owned this house for at least 16 years.

R-SchuleCPA

Level 5

My opinion-To avoid 100% taxation, you must reconstruct your costs in a fair an equitable manner. Ultimately you have proof of an existing structure, the only question is cost, which hopefully can be reconstructed. Whether or not the IRS will challenge such an estimation of costs will be at its discretion, but a good starting point is to claim fair and equitable construction expenses.

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