Community/condo association covenants, codes, restrictions (CC&Rs)
As long as you own the property
Receipts for capital improvements
As long as you own the property 3 years
Section 1031 (like-kind exchange) sale records for both your old and new properties, including HUD-1 settlement sheet
As long as you own the property 3 years
Mortgage payoff statements (certificate of satisfaction or lien release)
Forever, just in case a lender says, “Hey, you still owe money.”
Why you need these docs: You use home sale closing documents, receipts for capital improvements, and like-kind exchange records to calculate and document your profit (gain) when you sell your home. Your deed and mortgage payoff statements prove you own your home and have paid off your mortgage, respectively. Your builder’s warranty or contract is important if you file a claim. And sooner or later you’ll need to check the CC&R rules in your condo or community association.
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3 years after the due date of the return showing the deduction
Year-end mortgage statements
3 years after the due date of the return showing the deduction
PMI payment (monthly bills canceled check or bank statements showing check was cashed)
3 years after the due date of the return showing the deduction
Residential energy tax credit* receipts
3 years after the due date of the return on which the credit is claimed (including carryforwards**)
Why you need these docs: To document you’re eligible for a deduction or tax credit.
*Energy tax credits for alternative energy sources; credit expires at the end of 2016.
**Tax credits that you carry forward from one year to a future year, such as when you don’t have enough tax liability to offset the entire amount of the credit. (You can’t deduct more than you earn.) Only certain tax credits can be carried forward. Check with your tax pro about your particular circumstances.
| INSURANCE AND WARRANTIES | |
| Document | How Long to Keep It |
| Home repair receipts |
Until warranty expires
Inventory of household possessions
Forever (Remember to make updates.)
Until you receive the next year’s policy
Service contracts and warranties
As long as you have the item being warrantied
Why you need these docs: To file a claim or see what your policy or warranty covers.
INVESTMENT (LANDLORD) REAL ESTATE DEDUCTIONS
| Document | How Long to Keep It |
| Appraisal or valuation used to calculate depreciation |
As long as you own the property 3 years
Receipts for capital expenses, such as an addition or improvements
As long as you own the property online casino 3 years
Receipts for repairs and other expenses
3 years after the due date of the return showing the deduction
Landlord’s insurance payment receipt (canceled check or bank statement showing check was cashed)
3 years after the due date showing the deduction
Until you receive the next year’s policy
Partnership or LLC agreements for real estate investments
As long as the partnership or LLC exists 7 years
Landlord insurance receipts (canceled check or bank statement showing check was cashed)
3 years after you deduct the expense
Why you need these docs: For the most part, to prove your eligibility to best online casino deduct the expense. You’ll also need receipts for capital expenditures to calculate your gain or loss when you sell the property. Landlord’s insurance and partnership agreements are important references.
As long as you own the home 3 years
As long as you own the home 3 year
4 years after you make (or owe) payroll tax payments
| MISCELLANEOUS RECORDS | |
| Document | How Long to Keep It |
| Wills and property trusts | Until updated |
| Date-of-death home value record for inherited home, and any rules for heirs’ use of home | |
| Original owners’ purchase documents (sales contract, deed) for home given to you as a gift | |
| Divorce decree with home sale clause | As long as you or spouse owns the home 3 years |
| Employment records for live-in help (W-2s, W-4s, pay and benefits statements) |
Why you need these docs: Most are needed to calculate capital gains when you sell. Employment records help prove deductions.
Organizing Your Home Records
Because paper, such as receipts, fades with time and takes up space, consider scanning and storing your documents on a flash drive, an external hard drive, or a cloud-based remote server. Even better, save your documents to at least two of these places.
Digital copies are OK with the IRS as long as they’re identical to the originals and contain all the accurate information that was in the original receipts. You must be able to produce a hard copy if the IRS asks for one.
Tip: Tax season and year’s end are good times to purge files and toss what you no longer need; that’s often when the spirit of organization moves us.
When you do finally toss out your home-related paperwork, use a shredder. Throwing away intact documents with personal financial information puts you at risk for identity theft.
This article provides general information about tax laws and consequences, but isn’t intended to be relied upon as tax or legal advice applicable to particular transactions or circumstances. Consult a tax professional for such advice.
Read more: http://www.houselogic.com/home-advice/taxes-incentives/how-long-to-keep-tax-records/#ixzz3NzE4nPcK
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