Busy uncluttering Turbo Tax next?

[Blonde Granny]

I've been working lately to get rid of some things. I finally dumped the tax returns done by our accountant in 2000. I  am staring at a stack of Turbo Tax boxes from 2007 thru 2014. Is there any reason to keep these CDs? I have the returns on how TT did everything and I think 2007 probably goes back to Windows Vista and I have no computer to run some of these CDs on.

[TheHaitian]

Good luck!

I had a nice fire on Thursday night thanks to:
- paystubs since 2009
- tax returns since 2008 (only kept 2012 and up).
- really old paper work

And we still need to go trough our basement. We have storage bins full of stuff we haven't gone through since forever. We moved into the house and just left them downstairs.

My take: if we can go without missing them for over 4 years now, 3 moves... We can go trough them and get ride/donate what we do not need.

I hate clutter, even organized clutter!

[Ombud]

Keep 4 yrs tax returns, converted rest to flash drive once flash drives came out; all paperwork related to home 'improvements' as it will affect basis in case I ever convert to rental; investment paperwork only as long as I own the investment + tax year when less than that - last item will be less onerous as time goes on due to regulatory changes.

I only hold pay stubs until I get the next one if numbers are correct

[Blonde Granny]

I shredded tax returns from 2000 thru 2006. Filled 3 - 13 gal trash bags.  The ones from 2007 to 2014 are now almost alone in the drawer.  How to simply your tax return? Don't have much income....lol

[TheOtherMe]

I go to the other extreme.  I have every tax return I have ever filed.    The last few years are not printed, they are in Adobe and on flash drives. 

I want to be able to prove I filed and if I'm told I didn't, I have the return that should have been received.  Legally, IRS can go back forever if there is fraud.  Realistically, they do not go back more than 4 to 6 years, based on the severity of the crime.

[rangerj]

Keep records relative to the cost and adjusted basis of assets, e.g. house, stocks and bonds, other investments like coin collections or art work, etc. Keep tax return or schedules relative to depreciation of assets, appraisals, inventory values (especially if on the LIFO method). For a simple return, that is no business or rental activity, keep 5 to 7 years. Paper or electronic media are fine. Keep in a safe place. Corporate returns should be kept as long as the corporation, or LLC/LLP (legal entity), exists. If you have a net operating loss, carryover or carryback, then all returns from the origin of the loss and the use of the loss should be kept. The same is true for any other carryover or carryback e.g. charitable contributions, credits, casualty loss. There is no "one size fits all" answer to this question.

[mwcpa]

Generally I tell my clients, if there is something on your tax return this year that will impact a future year, you keep it.

In regards to documents collected I always suggest one keeps any permanent records, these include, but are not limited to:

purchase agreements for assets,

for a home owner, all receipts and proof of payment for any capital improvement,

at least the annual summary of buys and sells from brokerage and mutual funds,

gift tax returns,

contracts,

proof of basis computations in closely held businesses, partnerships, etc., including investment documents and K-1s if they are issued,

etc.

I also suggest that for current matters one keeps the supporting documents for at least 3 years after the filing of the tax return.

[TheOtherMe]

One must also consider the statute of limitations in the state where they live.  Where I live the tax return is due on April 30 (not April 15) and the statute of limitations is 4 years, not 3 years.  Guess the state wants more time to get it's money.