Documentation for renovating a home

...

Documentation for what purpose?

On Tue, 7 Nov 2017 14:57:34 EST, dpb wrote in

Taxes?

For adjustment/increase in cost basis.

documentation.

Yes. You need to keep an itemized list of what was ordered/purchased and proof that the items were purchased.

You can request a copy of the check from the bank or you can request that the contractor send you a receipt marked paid.

Ship date is irrelevant. You need to show what you ordered and that the order was paid for. Usually the online order confirmation indicates what CC was charged. (It doesn't matter that the full CC number is redacted.)

Ira Smilovitz, EA

On 07-Nov-17 5:17 PM, Not A Clue wrote: ...

What I figured; just thought make sure on same page...

See background info

and IRS Pub 523. For establishing basis in residence it's not necessarily just what is purchased added up; it depends on whether is improvement or repair, and a bunch of other details outlined in 523.

As for records, you should keep proof of payment in some manner; since basis accrues for as long as one keeps the house (and if have postponed gains on a previous sale it also may include basis in that former property as well) it's probably best to actually get copies of checks or other confirmed payment records at the time and file them away "just in case" as it may be any number of years in the future before the need arises.

The actual record is only needed if there were to be an audit and then's when the pressure is on and trying to reconstruct from what could be 20 year or more is much more difficult obviously.