Lost all my house building receipts from 2013 - how to prove cost basis for sold house?

You're in a common situation, and there's no need to panic. The IRS isn't expecting you to have every single receipt from a home built nearly 10 years ago. What they want is reasonable documentation of your cost basis. Your spreadsheet is actually a great starting point. The IRS generally accepts contemporaneous records - meaning records you created at the time of the transactions. If your spreadsheet shows detailed entries of payments, descriptions, dates, and totals that seem reasonable for home construction in your area, that carries weight. For supporting evidence, bank statements showing large withdrawals that match your spreadsheet would be helpful, but not having them isn't the end of the world. You can also gather other evidence: the original construction loan documents, property tax assessments from when the home was built, homeowner's insurance policy showing the replacement value, and even photos of the construction process. The key is responding to the IRS with as much documentation as you can reasonably provide, along with a clear explanation of your situation. They're usually willing to work with taxpayers who make good-faith efforts to comply.

After spending hours trying to gather documentation for a similar IRS issue, I discovered https://taxr.ai and it was a complete game-changer. I uploaded my spreadsheets and the partial records I had, and their system analyzed everything to help create a comprehensive response to the IRS. What really impressed me was how their software could identify patterns in my existing documentation to help fill gaps in my records. For my situation with missing home renovation receipts, they helped me establish a reasonable cost basis that satisfied the IRS without having to track down every single receipt from 8 years ago. The guidance they provided on how to present my case to the IRS was incredibly valuable - they knew exactly what documentation would carry the most weight and how to organize it effectively.

I have to follow up about https://taxr.ai because I actually tried it after my initial skepticism. I'm honestly surprised how helpful it was for my missing documentation issue. My situation: sold a rental property last year and couldn't find half the improvement receipts from 2016-2018. The system actually guided me through alternatives like credit card statements, contractor estimates for similar work, and property tax assessment increases. It organized everything into a comprehensive package that actually made sense. The IRS accepted my documentation package without further questions. What I appreciated most was the clarity on what constitutes reasonable proof when original receipts are missing. Saved me so much stress and potential audit headaches.

If you need to actually speak with someone at the IRS about your situation (which might be really helpful), try https://claimyr.com - it's the only thing that worked for me after spending DAYS trying to get through on my own. I watched their demo video at https://youtu.be/_kiP6q8DX5c and decided to give it a shot. I was in a similar position with missing documentation for my home sale, and I really needed to talk to someone at the IRS to understand exactly what they would accept. They got me connected to an actual IRS agent in about 20 minutes when I had previously spent hours just listening to hold music and getting disconnected. The agent I spoke with was actually super helpful and explained that they're mostly looking for reasonable documentation of my basis - not necessarily every single receipt. They suggested specific alternative documents that would satisfy their requirements.

Just wanted to update after trying the Claimyr service. I was really skeptical, but I was desperate to talk to someone at the IRS about my missing documentation situation. It actually worked! I got connected to an IRS agent in about 35 minutes (after spending literally days trying on my own). The agent walked me through exactly what they consider acceptable proof of basis when original receipts are missing. For my situation, they said my contemporaneous spreadsheet plus bank statements showing major withdrawals would be sufficient if I include a detailed explanation. They also told me something super helpful - that the burden of proof is less stringent for a primary residence within the exclusion amount, compared to investment properties. This was a huge relief because it means my documentation doesn't need to be absolutely perfect.

Former IRS employee here - one thing that people often don't realize is that the IRS generally does NOT expect perfect documentation for older transactions, especially for personal residences. The law recognizes that people don't keep every receipt forever. When responding to that IRS notice, make sure to include: 1) Your spreadsheet (absolute must) 2) Any closing documents from when you built the home 3) Construction loan documents 4) Property tax assessments from that time period 5) Building permits if you still have them 6) Photos of the construction if you have them Write a clear, factual letter explaining that this was your primary residence, you acted as your own GC, these are the records you maintained at the time, and the gain falls well within the $500k exclusion. Be straightforward and businesslike.

Has anyone successfully used the county's average cost per square foot for construction during that time period as evidence? My situation is similar but from 2014 and I'm wondering if showing that my claimed costs align with typical construction costs in my area would help.

I went through almost the exact same situation last year after selling my primary residence that I built in 2015. The IRS sent me a similar notice claiming the entire sale price was income because they didn't have records of my cost basis. Here's what worked for me: I gathered everything I could find - my construction spreadsheet (which sounds similar to yours), bank statements showing large withdrawals that corresponded to my spreadsheet entries, the original construction loan documents, building permits, and even photos from the construction process. The key was writing a clear, detailed response letter explaining that this was my primary residence, I was the general contractor, and that my total gain was well under the $500k exclusion limit. I included a statement that my spreadsheet represented my best contemporaneous record of actual costs incurred. The IRS accepted my documentation package without any follow-up questions. What really helped was showing that my claimed costs were reasonable - I even included a brief comparison to typical construction costs in my area during that time period. Don't panic about having every single receipt. The IRS understands that people don't keep perfect records from a decade ago, especially for personal residences. Focus on presenting what you do have in an organized, professional manner with a clear explanation of your situation.

I'm dealing with a similar situation right now - built my house in 2016 as owner-builder and sold it last year. The IRS is questioning my cost basis too. Reading through everyone's experiences here has been incredibly helpful and reassuring. What I'm finding most encouraging is hearing from the former IRS employee that they don't expect perfect documentation for older transactions, especially primary residences. I've been losing sleep over this thinking I needed every single receipt from 8 years ago. I do have my detailed construction spreadsheet that I maintained throughout the build process, plus most of my building permits and the original construction loan paperwork. Based on what everyone is sharing here, it sounds like this should be sufficient documentation along with a clear explanation letter. One question for those who have successfully resolved this - did any of you include photos of the construction process as part of your documentation package? I have hundreds of progress photos from the build and I'm wondering if those would be helpful as supporting evidence or if they're unnecessary. Also, for the timeline - how long did it typically take to hear back from the IRS after you submitted your response? I know I need to respond within the timeframe they specified, but I'm curious about how long the resolution process took for others.

I went through something very similar when I sold my primary residence that I built as an owner-builder in 2017. The IRS sent me that same scary letter claiming the entire sale price was taxable income, and I panicked because I had lost about 60% of my receipts over the years. Here's what I learned that might help: Your detailed spreadsheet from the construction period is actually your strongest piece of evidence. The IRS values contemporaneous records - meaning records you created at the time, not after the fact. Since you tracked everything during construction, that carries significant weight. I supplemented my spreadsheet with whatever I could find: bank statements showing large withdrawals that matched my spreadsheet entries, the original construction loan documents, building permits, property insurance documentation showing replacement value, and even my final inspection certificate from the county. The key was writing a comprehensive response letter that explained my situation clearly: this was my primary residence, I was the general contractor, I maintained detailed records during construction (the spreadsheet), and my gain was well within the $500k married filing jointly exclusion. The IRS accepted my documentation package without any follow-up. They're actually reasonable about missing receipts from older personal residence transactions - they understand people don't keep perfect records indefinitely. Focus on presenting what you have professionally with a clear explanation, and don't let them intimidate you into thinking you owe taxes on money you never actually gained.