Posted by Natalie-VA on March 23, 2006 at 16:14:09:
What happens when you get audited and you can’t show the IRS a settlment statement showing the higher purchase price?
I think a better solution would be to sell it within the next 3 years and avoid the tax. This assumes that at the time of sale you lived in the property the last 2 out of 5 years. I am not a CPA or attorney…just bouncing around ideas.