# Proving purchase price of home



## rggambrell (Apr 26, 2006)

In 1991 I built a new house mostly myself. A few jobs were contracted out but the contractors were paid in cash. I did most of the work. At the time and with so much going on I didn't keep receipts of material purchase or keep a record of the purchases or the amounts paid to contractors.
My question. Somewhere down the road if I had to prove what I paid for the house, say to the IRS, What could I do. I have all of my county tax receipts from then till now if that would help. 
Any info would be appreciated.


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## buffalocreek (Oct 19, 2007)

I wouldn't worry about it. The IRS has never asked me what I paid for any property I owned. If you're curious about current worth, get it appraised.


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## sugarbush (Jul 15, 2007)

Bank appraiser will give you an actual value. Tax appraiser will give you what ever the town wants to get for taxes on it


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## Dutchie (Mar 14, 2003)

sugarbush said:


> Bank appraiser will give you an actual value. Tax appraiser will give you what ever the town wants to get for taxes on it


Any appraiser will give you the type of value you ask for. If you ask me for an appraisal for r.e. tax purposes I;ll give you one of those. If you ask me for market value, I'll gie you that. If you ask e for an appraisal for insurance purposes, I'll provide you with that. Etc, etc.

Just make sure you and the appraiser know what you want.


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## MrPG (Oct 9, 2005)

You are not asking for an appraisal, you are asking for the "cost basis" of your home. Thus the difference between cost basis, and what you sell the home for, will be capital gains which you may or may not be taxed on.

What I think you should do is write down ASAP everything you can remember, then wait a bit and add to that list as different things jog your memory. Then talk to someone, maybe a CPA, who can help you turn that into a record that the IRS will accept.


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## FirefighterEd (Aug 4, 2007)

If this is your primary residence, or has been for any 2 of the immediate 5 years prior to selling the IRS won't care as any profits (capital gains) (up to $250K if you're single or $500K if you're married) are tax free and your cost basis won't matter.


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## rggambrell (Apr 26, 2006)

MrPG said:


> You are not asking for an appraisal, you are asking for the "cost basis" of your home. Thus the difference between cost basis, and what you sell the home for, will be capital gains which you may or may not be taxed on.
> 
> What I think you should do is write down ASAP everything you can remember, then wait a bit and add to that list as different things jog your memory. Then talk to someone, maybe a CPA, who can help you turn that into a record that the IRS will accept.


You're right MrPG,costs basis is what I am looking for. I basically know what I paid for the house, because I know the cash that I had to work with. I spent aroun $38,500 in 1991 when I built it and spent around $10,000 in 1995 when I built a room on. I just don't have any records of anything.Young and dumb,I guess.
Also Firefighter Ed, thanks for your advice. I thought that was the present law but any time congress is in session a law is apt to change. Maybe a stupid question but if I had to prove that I lived here for 2 out of 5 years, how would I do this.


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## MrPG (Oct 9, 2005)

I think if you were to get copies of bank statements around that time, showing the withdrawals even if they were cash withdrawals, and filled out an affidavit stating that this amount ($38,500 plus $10,000) is what you believe to be an accurate amount, that the IRS would accept it. After all they can look at records for similar houses nearby and see that you are not over-estimating the expense of buying one. I am not a lawyer however.


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