Your basis is the purchase price you paid, including certain settlement costs, plus the costs of capital improvements that increase the value of the property, lengthen its life, or adapt it to a different use. You should therefore keep the following records:
Purchase and sale agreement
Closing statement
Title
Mortgage agreement
Insurance policy
Proof of payment of capital improvements:
Putting an addition on your home
Replacing the roof
Rewiring your home
Installing central heat or air conditioning
Paving your driveway
Proof of payment of assessments for local improvements:
Roads
Sidewalks
Investments
The basis of stocks, bonds or other investments you buy is generally the purchase price plus any commissions and fees. Your basis will be affected by stock splits, capital distributions, reinvested dividends, and other events. You should keep:
Stock certificates
Brokerage statements
Mutual fund statements
Statements from investment companies
Statements regarding any type of pension or retirement account
1099 Forms
2439 Forms (Notice to Shareholder of Undistributed Long-Term Capital Gains)