Property Basis Calculations

[Darryl S.]

Calculating Tax Cost Basis Question: I would like to use the amount that my property deed was recorded for at the courthouse recorders office as my tax cost basis instead of my closing HUD statement amount. Can I use the publicly recorded amount as my cost basis for which I paid extra taxes (260k) or am I forced to use the HUD statement amount as my cost basis (155k)? Seems to me that if I paid the extra transfer taxes etc. on the 260k  that I would be entitled to use the recorded amount of 260k for my cost basis??  That way when I sell I will not be hit with a lot of capital gains taxes........    You see the stepped up basis applied all the time to properties in certain situations so it is not that unusual I just want to investigate a possibility here.