How long do I keep Tax Records? A Guide
I'm sure you have asked this question at least one time right after you have filed your tax return every year. As a Professional Tax Preparer/Accountant, I get asked this question a lot. So, here is the basic rule of thumb for holding onto those very important documents: • MINIMUM 3 YEARS After Date Filed for All Tax Returns and Records used to prepare the tax return. • ADDITIONAL 3 YEARS For Sale/Disposal of REAL ESTATE PURCHASED (including your home). Keep the records that show the original cost of the property (purchase price) plus improvements done over the years. • ADDITIONAL 3 YEARS For Sale/Trades of INVESTMENT SECURITIES (stocks, bonds, crypto, mutual funds, etc.). Keep the records showing the purchase amounts to include stock splits, dividend reinvestments, and nontaxable distributions. Also keep track of when any bonds or Treasury bills/notes mature. • ADDITIONAL 3 YEARS After Depleting Accounts that show payments made to NONDEDUCTIBLE IRAS or POST TAX 401(k)s