Residential closing and tax documents. For tax purposes hold onto these documents until seven years after you ve sold the property.
Likewise if you own a vacation home or invest in real estate rental properties you should keep these same documents for all the properties you own in addition to your main home.
How long to keep documents. To be on the safe side mcbride. This guide will explain how long to keep your documents from tax returns to personal records and offer suggestions for how to safely store and eventually dispose of them. If you fail to report all of your gross income on your tax returns the government has six years to collect the tax or start legal proceedings.
Seven years including your filing and all accompanying documents such as w 2s and receipts sales receipts. When considering how to long to keep utility bills or how to long to keep credit card statements if your instincts tell you not very long you re right. Keep for seven years.
Keep for the life of the warranty for major purchases such as appliances and electronics. However that period can increase in certain situations. Keep records for 7 years if you file a claim for a loss from worthless securities or bad debt deduction.
Another useful document to keep is your quarterly property tax bill. 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. Keep for 1 3 months.
Some paperwork has a short shelf life. Keep records for irs recommended period in general tax returns can be examined by the irs for up to three years after filing.