Q&A-Filing

Happy Monday Everyone! I'm still trying to put together my post on "Creating the Perfect Home Office". The decorating class at Pottery Barn was wonderful and very informative so I have lots of information and ideas to share. Today's post is a Q&A from the class on how long you should keep financial records.

Q: I want to declutter but I'm afraid to throw financial records away. How long should I keep them for?

A:
Tax Return - Keep records for seven years for years tax deductions were taken. The IRS has three years from your filing date to audit your return if it suspects good faith errors....You can also ask your accountant to put your returns on a CD, which makes them easier to store.

Bank Records - From one year (statements) to permanently (anything related to taxes, home improvements, and mortgage payments)..... Online banking and statements will cut down on clutter.

Brokerage Statements - Until you sell the securities. You need the purchase/sales slips from your brokerage or mutual fund to prove whether you have capital gains or losses at tax time.

Bills - One year, unless there's a dispute with a bill or the bill is for a big purchase (e.g. jewelry, appliances, cars) and might be needed for insurance purposes.

Credit Card Receipts and Statements - Keep records 45 days and statements seven years. Keep your original receipts until you get your monthly statement then shred the receipts if the two match up. Keep the statements for seven years if tax-related expenses are documented.

Paycheck Stubs - One Year

House/Condominium Records - From six years (documents related to expenses of buying/selling home such as legal and broker fees) to permanently (records documenting remodeling cost or purchase price).

I would like to thank the Pottery Barn team for giving me such great and useful information.... Thanks Guys!......More to come on "Creating the Perfect Home Office".