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Saving Records

Saving Records. Why Save Records?. To substantiate the information reported on the tax return. Statue of limitation for most federal tax returns is three years. How Long Should You Keep Records?. Prior Year Returns Minimum of three years. Tax Receipts Minimum of three years.

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Saving Records

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  1. Saving Records

  2. Why Save Records? • To substantiate the information reported on the tax return. • Statue of limitation for most federal tax returns is three years.

  3. How Long Should You Keep Records? • Prior Year Returns • Minimum of three years. • Tax Receipts • Minimum of three years. • Business Records • Some operational expense receipts can be discarded. • Retain receipts that relate to property you still own. • Keep payroll records for a minimum of four years. • If business losses occur, retain all records pertaining to the carryover loss calculations.

  4. How Long Should You Keep Records? • Employee Business Expenses • Keep mileage logs, hotel bills, and meal receipts for a minimum of three years. • Truck drivers should keep logbooks for a minimum of three years. • Sale or Purchase of a Home • Retain closing papers for a minimum of three years. • If you deferred gain, save the closing papers and tax return from the sale through the limitation period of your next home sold.

  5. How Long Should You Keep Records? • Building or Improvements to Your Home • Keep records of all expenditures for a minimum of three years after the home is sold. • Investment Records • Save records for at least three years after you sell the investment. • IRA Contribution and Distribution Records • Keep indefinitely.

  6. Gifts & Inheritances • Need to know the cost of the gift. • Obtain receipts for non-cash gifts. • When inheriting property, keep records that establish the value of the property.

  7. Summary While the most common statute of limitations is three years for the filing of the return, a return that was never filed has no statute of limitations. Tax planning and tax return processing can be a confusing process. I’m available to help you and to give you the best tax outcome possible.

  8. Thank you.

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