I am wondering about the benefits of voluntarily attaching tax basis balance sheet for high net worth individuals 1040 and larger trust 1041 each year.
Do you think it helps establish basis and asset ownership in case of irs audits and reduces cynical position in lifestyle audit by agent of viewing large assets as recent acquisitions from unreported income. Also would it reduce burden of proving with receipts of long held assets and improvements made many years ago. I am thinking houses ornaments gold antiques etc long held by families including generational heirlooms and the difficulty of proving at a point of time.