As with all things dealing with income taxes documentation is a must. Since you are dealing with personal, business, and investment use property it is imperative that you have good documentation for all figures you use in your calculations. The exclusion of CODI and the lack of claiming a taxable gain on the proper forms is one of the “high risk” audit items at the IRS.
When dealing with your business and investment items you need the same type of documentation that you would use to determine basis for disposition. If the item has been in service and has been depreciated, a copy of the current depreciation worksheets are a great Read more