Do I Still Have to Keep This?
(Record Keeping Recommendations)
Generally: IRS has a three year statute of limitations and California has a four year statute.
Income Tax Returns & Supporting Documents - Keep at least four years and preferably six if space if not critical. Once this period has elapsed, the documents can be discarded, but the returns themselves, which do not take much space, should be retained indefinitely.
Real Estate Property Records - All escrow statements (purchase and sale), refinancing closing statements, and receipts/checks for improvements should be kept for at least four years after property is sold.
Purchase Receipts for Stocks, Bonds, Mutual Funds - These should also be kept for at least four years after the asset is sold. This would include records of stock dividends, splits and reinvested dividends.
Depreciation Records - For any rental real estate or depreciable business property you own, keep records of the property's cost, date acquired, and the schedule of depreciation claimed in previous years. These records should be kept until four years after the disposition of the property.
Retirement Plan Contributions - Records of nondeductible IRA deposits, employer-plan stock purchases, rollovers, conversions to Roth IRAs and Keogh plan deposits should be kept until four years after the plan assets have been withdrawn.
Personal Records - Important papers such as estate and gift tax returns, divorce and property settlement agreements, deeds, title insurance policies, and all trust documents should be kept in a permanent file (or a safe deposit box).
Miscellaneous Papers - All other documents including bank statements, canceled checks, credit card statements, deposit slips, charitable contribution receipts and medical bills can be discarded after four years.
IF YOU ARE NOT SURE, CALL US BEFORE YOU THROW IT OUT!!!!!
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