Spring Cleaning: What Records Should I Keep?

With spring around the corner (and the inevitable spring cleaning); we wanted to share a few quick items for you to consider when thinking about cleaning out some of your old files.

The general statue of limitation for assessment of additional taxes owed from the IRS is 3 years from the date you file your return. Some exceptions do apply in regards to unreported income or fraudulent returns – which increase the time frame for statute of limitation in an audit.

• Capital gains and loss records: 3 years from date filed in a return
• Expenses on your home: until home is sold
• Business records: 39+ years due to depreciation time frame on non-residential real estate
• Employment, bank, and any brokerage statements: 3 years from date filed in return
• Old tax returns: Generally 6+ years to satisfy unreported income statute of limitation

• Estate planning documents (wills, trusts, health care directives, etc.)
• Birth, death, marriage, baptismal certificates
• Divorce agreements
• Passports
• Social Security cards

Steven C. Finkelstein, CFP®, Megan E. Gehrman, CFP®, and Luke J. Strom, CFP® are Financial Advisors at Sterling Retirement Resources, Inc., 8401 Golden Valley Road, Ste 225, Golden Valley, MN 55427. 763-762-3400.

Securities and advisory services offered through Cetera Advisor Networks LLC, Member FINRA/SIPC, a Broker-Dealer & Registered Investment Advisor. Some advisory services also offered through AdvisorNet Wealth Management. Cetera is under separate ownership from any other named entity.