Buying
Most buyers see a staged listing and a marketing tearsheet. They commit on photographs and a CPA-on-call. A pre-purchase IDist engagement is an information advantage the seller does not expect, verified permit history, contractor provenance, condition record, substantiated master attributions, capital-improvement defensibility. Whether the residence is on the market or pocketed.
Original cost basis is the foundation of every future tax position. IRC §1012 sets it at the cost of the property; IRC §1016 builds on it through every subsequent capital improvement. A buyer who closes with an IDist dossier starts on day one with an unambiguous basis record, purchase price, allocated improvements, attributed installed assets, condition baseline, instead of reconstructing it years later under audit pressure or at sale.
IRC §1012, §1016 · Treas. Reg. §1.1012-1, §1.1016-2
NY State and NYC mansion tax is buyer-paid: 1% on sales of $1M+, increasing progressively above $2M, $3M, $5M, $10M, $15M, $20M, and $25M after the 2019 NY amendments. On a $15M residence, the buyer owes approximately $300k in mansion tax alone. This is not avoided. It is, however, a calculable cost that should be priced into the offer, and the dossier’s condition substantiation can support the negotiation posture.
NY Tax Law §1402-a · NYC Admin. Code §11-2102.3 (2019 amendments)
For buyers acquiring through inheritance or trust, IRC §1014 steps basis up to fair market value at the decedent’s date of death. This eliminates accrued capital gain. The FMV must be defensible, qualified appraisal, documented condition, named masters, substantiation chain. A residence inherited with an IDist dossier walks into the appraisal with the evidence already organized; a residence inherited without one forces the heirs to reconstruct retroactively. On an $8M-to-$20M appreciation arc, the step-up eliminates approximately $12M of gain, worth $4M+ at the combined rate.
IRC §1014 · Treas. Reg. §20.2031-1(b)
Where the acquisition is investment property (not the primary residence), IRC §1031 permits like-kind exchange deferral on a prior investment sale. Strict timing: 45 days to identify, 180 days to close. The dossier supports the held-for-investment characterization through occupation records, rental documentation, and improvement allocation. Pure personal residences are excluded under §1031(a)(2) and Treas. Reg. §1.1031(a)-1(a), the carve-out matters and must be respected.
IRC §1031 · Rev. Proc. 2000-37, 2008-16
Beyond tax, the dossier delivers a substantive condition record at the moment of offer. Builder-grade finishes mislabeled as custom. Permit irregularities that were not disclosed. Capital improvements claimed by the seller but unsubstantiated. Master attributions that prove either to be a $300k Italian leather suite or a Restoration Hardware wrapper. The information advantage moves the conversation from broker-controlled to buyer-controlled.
Pre-purchase due diligence · IRC §1016 origination at acquisition
This is not tax advice. Your CPA, attorney, and qualified appraiser execute the position. IDist substantiates it, by brand, model, vendor, invoice, install date, photo, and condition record, so the professionals on your side can stand behind the numbers.
You may also be
Quiet Sale
For owners selling one residence to acquire another, particularly CA→NY, the sequencing closes on both sides.
Capital Improvement
After the close, the dossier becomes the substantiation foundation. The first ST-124, the first invoice, the first attribution begins.
The Record
What IDist actually delivers. Pre-purchase engagement is one of the strongest moments to begin.
A complete, verified record of your residence and everything in it, and a roadmap for its worth. By appointment.