How long do you have to keep your records?

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Sandy Botkin
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HOW LONG DO YOU HAVE TO KEEP TAX RECORDS, SANDY BOTKIN, TAXBOT, TAX DIARY, TAX TRACKER, TURBO TAXI constantly get asked, “How long do you need to keep all tax records?” According to the IRS and CRA, the answer is “as long as they are important in figuring your basis and needed for a potential audit.” Isn’t that helpful?

Here is the answer in clear language without the gobbledygook.
1. Items that are deductible, such as expenses, should be kept at least 6 years after the year you incur the expense.
2. Items that affect basis, such as stock purchase documents or real estate closing statements should be kept for as long as you own this property and for 6 years after a taxable sale.
3. Tax returns should be kept until the seas run dry, which means for three years after your death. The same rule applies to your tax diary or tax tracking information, SUCH AS TAXBOT. No wonder we keep buying bigger and bigger homes for all our stuff.

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