| BOLTON MANAGEMENT GROUP,LLC |
Keeping Records
We recommend that you do not ever discard your tax returns because they are
considered the most valid proof of past income. Additionally, it 's a good idea to
keep your important documents that have affected your income and deductions
for at least 3 years.
How are Your Financial Records?
Do you know which records you should keep, and which you can safely throw
out? Do you have them organized for easy access? Here's an idea of what to
keep, what to throw out and when to throw it out.
Keep Indefinitely
Home purchase and improvement records - you will need these records to
determine if you owe tax when you sell the home (Effective 5/6/97: exclude
500,000 gain MFJ, 250,000 all others if 2/5 years use test is not met. NOTE: This
law can change or be reduced at anytime. This is a good reason to keep these
records.
Purchase records for investments that you have not yet sold.
Sales receipts for major household furnishings to document any future insurance
claims.
All past federal income tax returns (with canceled checks to the IRS, where
applicable and all W-2's): against the unlikely possibility that you might some day
have to reconstruct your lifetime earnings for Social Security purposes or to
prove that you actually filed a tax return for a given year.
Because IRA basis Form 8606 will be needed when distribution begins.
Form 2119 Sale of Residence will be needed for basis reconstruction.
Financial Statements, Journals & General Ledgers
Contracts & Leases
Corporate Stock Records & Minutes
Real Estate Records
Tax & Legal Correspondence
Keep Seven Years::::cancelled Checks.
Credit Card Receipts
Paid Invoices
Bank Deposit Slips
Bank Statements
Employment Tax Returns
Expense Records
Entertainment Records
Keep Three to Five Years
Such documentation as interest paid on loans, charge accounts and major
purchases, plus drugstore supplies and medical bills.
Expired insurance policies in case of a delayed claim.
Canceled checks.
Inventory Records
Keep One Year:
Paycheck stubs, in case you have any questions about the W-2 wage and tax
statement your employer sends you at the end of the year.
Any papers regarding income or expenses that might be used on your current year
income tax return.
Keep Various Lengths:
Employee Records: Keep period of employment plus 7 years
Depreciation Schedules: Keep life of assets plus 7 years.
For more information on what kinds of records to keep, see Publication 552,
Record keeping, for Individuals, and Publication 17, Your Federal Income Tax for
Individuals. Both are available from www.irs.gov or 1-800-829-3676.
considered the most valid proof of past income. Additionally, it 's a good idea to
keep your important documents that have affected your income and deductions
for at least 3 years.
How are Your Financial Records?
Do you know which records you should keep, and which you can safely throw
out? Do you have them organized for easy access? Here's an idea of what to
keep, what to throw out and when to throw it out.
Keep Indefinitely
Home purchase and improvement records - you will need these records to
determine if you owe tax when you sell the home (Effective 5/6/97: exclude
500,000 gain MFJ, 250,000 all others if 2/5 years use test is not met. NOTE: This
law can change or be reduced at anytime. This is a good reason to keep these
records.
Purchase records for investments that you have not yet sold.
Sales receipts for major household furnishings to document any future insurance
claims.
All past federal income tax returns (with canceled checks to the IRS, where
applicable and all W-2's): against the unlikely possibility that you might some day
have to reconstruct your lifetime earnings for Social Security purposes or to
prove that you actually filed a tax return for a given year.
Because IRA basis Form 8606 will be needed when distribution begins.
Form 2119 Sale of Residence will be needed for basis reconstruction.
Financial Statements, Journals & General Ledgers
Contracts & Leases
Corporate Stock Records & Minutes
Real Estate Records
Tax & Legal Correspondence
Keep Seven Years::::cancelled Checks.
Credit Card Receipts
Paid Invoices
Bank Deposit Slips
Bank Statements
Employment Tax Returns
Expense Records
Entertainment Records
Keep Three to Five Years
Such documentation as interest paid on loans, charge accounts and major
purchases, plus drugstore supplies and medical bills.
Expired insurance policies in case of a delayed claim.
Canceled checks.
Inventory Records
Keep One Year:
Paycheck stubs, in case you have any questions about the W-2 wage and tax
statement your employer sends you at the end of the year.
Any papers regarding income or expenses that might be used on your current year
income tax return.
Keep Various Lengths:
Employee Records: Keep period of employment plus 7 years
Depreciation Schedules: Keep life of assets plus 7 years.
For more information on what kinds of records to keep, see Publication 552,
Record keeping, for Individuals, and Publication 17, Your Federal Income Tax for
Individuals. Both are available from www.irs.gov or 1-800-829-3676.
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