If you claimed a deduction for property damage.
Don't just use the purchase price. According to IRS Publication 551 , you can increase your basis (reducing your taxable gain) by adding: 551 mp4
If you received property as a gift or inheritance, your basis isn't what you paid—it's likely what the original owner paid. 🛠️ Adjusting Your Basis (Increasing Your Fortune) If you claimed a deduction for property damage
Without an accurate basis, you don’t know if you actually made money. 551 mp4
Have you ever sold a stock, a house, or a rare comic book and wondered, "How much tax do I actually owe on this profit?" The answer lives in a 12-page document often overlooked until it's too late: .