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Old 02-14-2017, 08:21 PM
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Thumbs up Capital Gains on house sale

Sold my house for $1.1m on 2/2017. Purchased house for $420k in 1989. Profit is $680k. This exceeds my married tax allowance of $500k by $180k.
Upgrades to the house exceeded the $180k but I dont have receipts for this.
I do have before and after photos of all the improvements done to the house.
Will the IRS accept these photos instead of receipts for the $180k in upgrades?



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Old 02-15-2017, 06:55 PM
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Join Date: Oct 2010
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Quote:
Originally Posted by Dlokie View Post
Sold my house for $1.1m on 2/2017. Purchased house for $420k in 1989. Profit is $680k. This exceeds my married tax allowance of $500k by $180k.
Upgrades to the house exceeded the $180k but I dont have receipts for this.
I do have before and after photos of all the improvements done to the house.
Will the IRS accept these photos instead of receipts for the $180k in upgrades?
You may try it with the IRS since there is no penalty in trying the method; the IRS will allow expenses even if receipts and checks are missing. All you need is a reasonable basis to recreate the expense and credible testimony that you actually spent the money No reciepts, but there is a basis to recreate and prove the expense. For a flooring contractor to his subs, for example ? labor expenses can be proven by recreating the jobs performed and the manpower used. Carpet and flooring does not get laid by itself ? a statement as to how the business was conducted supports the expenses. please contact the IRS for more accurate info in detail; it is up to IRS.



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