Record Keeping for Tax Purposes

Record Keeping for Tax Purposes

What records should you keep?

How long should you keep your records?

What records should you keep?

Records of income

• W-2s
• 1099s

Records of expenses

• Business expenses
• Personal expenses - especially if you itemize

Records for capital assets

• Purchase price including commission
• Cost of improvements
• Sale price including cost of sale

How long should you keep your records?

Keep all relevant documents for at least three years

Preferably keep for six years

For capital assets (stocks, bonds, mutual fund shares, home)

Keep all records, including purchase price, until at least three years after you've sold the asset