Questions:
How Long Should I Keep This?
Generally the IRS has a three year statute of limitations and California has a four year statute.
- Income Tax Returns & Supporting Documents - Keep at least four years and preferably six.
- Real Estate Property Records - All purchase, sale, and refinancing escrow/closing statements, and receipts and cancelled checks for improvements should be kept for at least 4 years after property is sold.
- Purchase Receipts for Stocks, Bonds, Mutual Funds - These should be kept for at least 4 years after asset is sold.
- Depreciation Records - These should be kept for at least 4 years after asset is sold.
- Personal Records - Estate and gift tax returns, divorce and property settlement papers, trust documents, deeds, insurance policies, and other important documents should be kept permanently, preferably in a safe deposit box.
- Miscellaneous Papers - Other documents, such as bank statements, canceled checks, credit card statements, deposit slips, charitable contribution acknowledgements, medical expense receipts can be discarded after 4 years.