How to Establish Tax Basis of Second Home with No Records?

[tdellecker]

We are selling a very old home that is not our primary residence and was passed down through several family generations.  We have no records to establish cost basis for tax purposes, since to our knowledge the house was never sold by the original owners, only passed on via inheritance or title transfer.  Obviously the true cost basis is not $0, but how do we establish a number that can be defended if audited by the IRS?

[DoninGA]

You would use the Fair Market Value of the home on the date the owner died and from whom you inherited the property.  For the FMV you could ask a local realtor for an estimate or the tax records for the home from the city/county tax department.