Unexpectedly sold a large parcel of raw land end of 2024. Improvements were done over the years such as land clearing, pond up keep, gravel etc however many of these items were either under the table, cash or not documented. Is there any way to still claim these to reduce capital gain?

likehelpful
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Yeah, it doesn’t matter unless you get audited

likesmart

I wonder if you ‘recreated’ a spending journal with notes and dates and amount spent, if that would help cover your butt.

likesmart

You can add some of the improvements to tax basis. Gravel, land clearing. Not the pond maintenance

You can go with your best estimate. Take pictures of the property which should show improvements. J would keel all that for at least 3 years. Also if you have proof from a bank statement, you could keep that as well.

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