Generally, keep 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.
When your records are no longer needed for tax purposes, do not discard them until you check to see if you have to keep them longer for other purposes. For example, your insurance company or creditors may require you to keep them longer than the IRS does.
More In File. Period of Limitations that apply to income tax returns Keep records for 3 years if situations 4 , 5 , and 6 below do not apply to you. Keep records for 3 years from the date you filed your original return or 2 years from the date you paid the tax, whichever is later, if you file a claim for credit or refund after you file your return.
Although you might not always need them to do your taxes, you should also keep the following business documents on hand:. Because the burden of proof is on you to back up every item on your tax return with documentation, the best approach to recordkeeping for small businesses is to try to keep as many records as you can.
Need some help with your bookkeeping and recordkeeping? Check out Bench. Receipts sometimes get lost, especially for small expenses. Can you still claim those receipt-less expenses as tax deductions? You might have to submit a list all of the people who were there with you when the expense occurred, and what you talked about really—the IRS wants to know if you talked shop. This is mainly due to the Period of Limitations , which is the time during which you can amend your tax return, or during which the IRS can perform an audit on your return.
For example:. You should keep employment tax records for at least four years after the date that payroll taxes become due, or are paid whichever is later. Hoping to get away with tax fraud? Just something to keep in mind! The standard three year period of limitations applies to any deductions you make related to your property depreciation, loss from a sale, etc. But sometimes the length of time between when you dispose or sell your property and when you no longer need to keep those documents can be longer than 3 years.
Say you dispose of a property by selling it during the tax year, report the financial gain on your tax return, and file your tax return right on the tax deadline of April 17, These records usually include deeds, titles, and cost basis records for instance, receipts for equipment such as computers or vehicles.
If you have online banking, no. The digital copy will be just fine. This means you must be able to produce a printed, legible copy of the document for them upon request. We also use cookies set by other sites to help us deliver content from their services.
You can change your cookie settings at any time. You must keep your records for at least 5 years after the 31 January submission deadline of the relevant tax year.
Example If you sent your to tax return online by 31 January , you must keep your records until at least the end of January If you cannot replace your records, you must do your best to provide figures.
There are other ways to work for yourself. Check if you should set up as one of the following instead:. You can register a trade mark if you want to stop people from trading under your business name.
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