RECORD KEEPING

SAFE-DEPOSIT BOX

• Automobile: Title. Keep until sold or traded.
• Credit records: Installment or other contracts. Keep until debt is paid or as needed.
• Copy of will and/or trust documents, letter of last instructions, master list indicating the location of important documents and names and addresses of personal and legal advisors. Keep indefinitely; update as needed.
• Housing: Title insurance policy, home insurance policy, mortgage papers, purchase and sale agreements, deed. Keep until property is sold, then keep a copy of the purchase and sale agreements indefinitely.
• Insurance: Personal property inventory including original purchase price and photos of each room showing especially valuable or unusual possessions; property appraisals. Update as necessary.
• Investments: Bonds, certificates of deposit, stock certificates. keep until sold, maturity, and/or redemption.
• Important papers: Death certificates, birth certificates, passports, marriage licenses, divorce papers, citizenship papers, diplomas, military papers, social security numbers, adoption papers, drivers� license numbers. Keep indefinitely.

IN FILE FOLDERS

• Automobile: Payment book � keep until car is paid in full. Repair records, receipts for parts, and record of gasoline purchases. Keep until car is sold or traded. If used for business � keep and store records to substantiate business use with the tax return; keep purchase and sales agreements for six years after car is sold or traded.
• Bank: Passbook � keep until account is closed. Bank statements, check registers, canceled checks � keep for three years. Store checks substantiating tax-related deductions with tax return.
• Cash receipts for major purchase: Appliances, jewelry, furniture, TV and stereos, home maintenance equipment, etc. Keep until the item is sold if it�s proof of purchase for an item listed on your household inventory.
• Current Bills: All unpaid bills, charge account slips. File in specific folders when paid. Keep one year for general purposes and indefinitely if used to provide legal evidence as proof of purchase. Keep and store with tax return if needed to substantiate a tax-deductible item.
• Credit records: List of credit card account numbers, creditors� phone numbers and addresses. Keep until cards expire or are destroyed.
• Education and employment information: Personal benefit report, employee benefit information � keep as needed. Pension records from prior employer � keep indefinitely.
• Copy of will and/or trust documents, letter of last instructions, master list indicating the location of important documents and names and addressees of personal and legal advisors. Keep indefinitely; update as needed.
• Financial planning: Cost figures for budget items, as needed. Guarantees and warranties. Attach purchase receipts. Annually remove expired warranties and guarantees. Instruction manuals � keep until item is discarded or sold.
• Housing: Home improvement receipts, record of land transfer taxes, and list of purchase price, closing costs, and selling costs. For tax purposes, keep all records and receipts pertaining to permanent home improvement and buying and selling costs until the end of the third year following the year in which you sell your last home. Termite inspection policy � keep until property is sold. Rented property: Copy of lease or rental agreement and pictures showing move-in condition of rental property. Keep until you move and claims are settled.
• Insurance: List of policy numbers, names(s) of insured persons(s), beneficiaries, issuing company, agent, type, and amount of coverage. Copies of all policies. Update as necessary.
• Car: Record of traffic violations or accidents. Keep for six years after violation. Health: Medical history. Update as necessary. Property: Personal property inventory including original purchase price and photos of each room showing especially valuable or unusual possessions. Update as necessary.
• Investments: Record of stock or bond purchase and selling price � update as necessary for tax purposes. Transaction slips (broker�s purchase and sale statements) � for tax purposes keep until the third year after the asset is sold.
• Taxes: Paycheck stubs � discard annually after checking against W-2 totals. Income statements (all W-2 and 1099 forms). Receipts for tax-deductible items; e.g., mortgage interest paid, child care, medical care, charitable contributions and donations, business-related expenses (annotated credit card receipts and ticket stubs), real estate taxes, and casualty losses � use annually, then store with tax return. Annual mutual fund and limited partnership statements (K-1s), police theft reports and insurance claims, medical reimbursement claims � use annually, then store with tax return.
• Inventory of safe deposit box.
• Loan statements and payment books.
• Tax returns: See the section entitled �Keeping Records.�

BUSINESS TRAVEL LOG

• Tolls
• Taxis
• Parking fees
• Gas and maintenance
• Tips and miscellaneous
• Auto rental
• Transportation tickets

IN YOUR CHECK REGISTER

• Charitable contributions
• scellaneous expenses (union dues, tax return preparation costs, financial publication subscription, and the like).

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KEEPING RECORDS

How long should you keep tax records and returns? Ordinarily, the IRS has three years in which to audit federal income tax returns. This limit, however, does not apply in unusual cases. If more than 25 percent of your gross income was not reported, the government has six years to collect the tax or to start legal proceedings. Also, there are no time limitations if you filed a fraudulent return or if you failed to file a return.

But you don�t have to keep everything for tax purposes. You can lighten your record load by discarding certain checks and bills once they have served their purpose. For example, you can throw away weekly or monthly salary statements, assuming you are paid in that way, after you check all items listed on your annual W-2 form. Remember, however, payroll deductions do not appear on W-2 forms! Save canceled checks that relate directly to an entry on you tax return, and keep all medical bills for three years to back up your canceled checks.

The IRS generally keeps records for six years. You can obtain a copy of your tax return by sending Form 4506, Request for Copy of Tax Form, to the IRS center where your return was filed, Make sure you include your social security number and appropriate payment.




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WHAT TO KEEP

Every piece of documentation you need to fill out your tax returns and, if it comes to that, to defend them at an audit should be at your fingertips. To help, you should keep everything in one of four places. Use the checklist inside to remind yourself what to keep and what you can discard.





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