How long keep tax docs

These records usually include deeds, titles, and cost basis records for instance, receipts for equipment such as computers or vehicles. If you have online banking, no. The digital copy will be just fine. This means you must be able to produce a printed, legible copy of the document for them upon request. Digitizing your records is also a great way to avoid accidentally tossing them in a move or an overzealous fit of spring cleaning.

We recommend scanning every record and receipt in your business, tagging it with a descriptive name, and archiving it forever. If you do end up going the paperless route, remember to keep a backup copy of your documents in a secure second location, like a password-protected hard drive, or a secondary cloud storage service.

Your Bench subscription includes unlimited document storage, which means you can keep every receipt, invoice, or IOU in the same place as your bookkeeping. At year-end, your CPA or tax professional can review your documents and completed financial reports side-by-side, making tax filing a breeze.

Learn more. Hold up. Before you toss them, double check to see whether anyone else you do business with might need them. Creditors, business lawyers, and insurance companies all sometimes require you to keep records longer than the IRS does.

This is really just another benefit to keeping digital records. Instead of worrying whether you should be keeping or getting rid of them, you can archive them permanently. Or even better, digitize it. We're an online bookkeeping service powered by real humans. Bench gives you a dedicated bookkeeper supported by a team of knowledgeable small business experts.

Your bookkeeping team imports bank statements, categorizes transactions, and prepares financial statements every month. The information below reflects the periods of limitations that apply to income tax returns. Unless otherwise stated, the years refer to the period after the return was filed. Returns filed before the due date are treated as filed on the due date. Note: Keep copies of your filed tax returns.

They help in preparing future tax returns and making computations if you file an amended return. The following questions should be applied to each record as you decide whether to keep a document or throw it away. Generally, keep records relating to property until the period of limitations expires for the year in which you dispose of the property. You must keep these records to figure any depreciation, amortization, or depletion deduction and to figure the gain or loss when you sell or otherwise dispose of the property.

If you received property in a nontaxable exchange, your basis in that property is the same as the basis of the property you gave up, increased by any money you paid. With stocks, bonds or property, maintain records until you sell the asset. For instance, you may need this documentation to determine depreciation or amortization as well as calculating a gain or loss after the sale.

You may need to keep your tax records longer, depending on the statute of limitations for audits in the state where you live. For instance, California has a four-year statute of limitations. If your state return under-reports income or contains false information, that period could be longer.

Check with your state tax authority for more information. Facebook Twitter Email. Taxes How long should I keep my tax returns? Show Caption.