Record Retention Tips
May 21, 2020
Like so many of us, you probably have a filing cabinet full of papers from years past or files in your computer that you have been saving “just in case” you need them some day. While there are some records that are important and do need to be kept permanently, that is a relatively short list. To help you retain important documents and eliminate those that aren’t needed, we’ve gathered a handy list of what you need to keep, and for how long. With so many things stored in “the cloud” these days, it is necessary to have printed copies of important documents in case you temporarily lose access to online items. It is also equally important to protect yourself and your personal information or that of your employees/clients by shredding or safely and permanently deleting documents that have a shelf-life.
[table id=34 /]
The IRS has provided the following time limitations for income tax returns:
The IRS recommends keeping 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. You must keep the records on the old property, as well as on the new property, until the period of limitations expires for the year in which you dispose of the new property.
[table id=35 /]
[table id=36 /]
[table id=37 /]
[table id=38 /]
Real Property Records
[table id=39 /]
Please note that this is by no means an all-inclusive list, nor is it permanent. Policies and advice change over time, and this is just a general guide.
If you have any questions and would like to connect with a team member please call 404-874-6244 or contact an advisor below.CONTACT AN ADVISOR
Subscribe to our newsletters to get inside access to timely news, trends and insights from Smith + Howard.