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Stephen G.
Stephen G., Financial Advisor
Category: Capital Gains and Losses
Satisfied Customers: 6181
Experience:  Senior Tax Expert; CPA/PFS(retired)Personal Financial Planner; Small Business & Professional Mergers & Acquisitions
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My CPA is having trouble accessing my capital gains tax on 2

Customer Question

My CPA is having trouble accessing my capital gains tax on 2 houses I sold. One was my primary residence. I have no original documents because they were lost during
moving. The house I lived in was bought in 1975. I have no HUD 1. What do I use to figure out my capital gains tax?
Submitted: 9 months ago.
Category: Capital Gains and Losses
Expert:  CGassist.168 replied 9 months ago.

Q: What do I use to figure out my capital gains tax?

A: Do you mean what do you use as the cost basis amount? Sale price minus cost basis determines whether you have incurred a gain or not.

Customer: replied 9 months ago.
Do I just try to remember the amount I paid for the house and date I bought it. I have a record of all improvements.Do
I have to show proof such as a hud 1?
Customer: replied 9 months ago.
Maybe this will make it simple. I have all documents HUD 1 etc. related to the sell of properties. I have no papers showing that I bought it,
Expert:  CGassist.168 replied 9 months ago.

Sorry for the delay, I was away from the computer. In most cases, the IRS does not ask for proof of the cost basis. If you have the HUD-1 docs that show the cost and you have a record of the qualified improvements, that should suffice. However, be prepared to show proof of the cost if the IRS ask for it. As for proof that you bought the house, the HUD-1 should show you as the purchaser. Does the Hud-1 not show you as the purchaser? If it doesn't, who is the Hud-1 showing as the purchaser?

Customer: replied 9 months ago.
One of my questions was answered out of two. I stated twice that I had no HUD -1 Tax Report. All original sales papers
were lost. In the lawyers answer, he told me to refer to my HUD 1 sheet.
Expert:  CGassist.168 replied 9 months ago.

Following is what you wrote in one of your responses:

Maybe this will make it simple. I have all documents HUD 1 etc. related to the sell of properties. I have no papers showing that I bought it,

My understanding of the above is that you HAVE a Hud-1. Go back and check what you wrote. It doesn't sound like you know what you have, or maybe something else is going on here. Whatever the case is, I am going to opt out and place the question back into the question queue so that someone else may assist you.

Expert:  Stephen G. replied 9 months ago.

OK, another expert here. Let me see if I can assist.

First of all, what is your filing status? Single or Joint?

What was the gross sales price of the home?

To the best of your recollection, how much did you pay for the home? (By the way, if need be, you can look up the deed to the property when you originally acquired it, possibly online depending upon where you are, at the Registry of Deed for the area where the property is located.)

If you can answer these questions, it will be a good place to start to figure out what you need.

Expert:  Stephen G. replied 9 months ago.

Do you have any additional follow-up questions?

If not, please remember to rate my response as that is the only way we receive credit for our work.

Thanks very much,

Steve G.

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