Yesterday I explained the recommended holding periods for documents as it applies to businesses. For the most part, the statute of limitations is similar for individuals. The result is that supporting documents should be kept for 7 years.
There are a couple of additional pieces of information that merit mention. It is advised that you keep a copy of your W-2s until you begin receiving social security benefits in the event that there is some question about your work record as it relates to your benefit calculation.
For capital gain and loss calculations you need to be able to establish your basis as it relates to capital assets. This means all purchase information regarding your investments need to be retained for as long as you own the asset and for 7 years after disposition.
As always, if you have any questions about the length of time to maintain adequate records, consult your tax professional.
There are a couple of additional pieces of information that merit mention. It is advised that you keep a copy of your W-2s until you begin receiving social security benefits in the event that there is some question about your work record as it relates to your benefit calculation.
For capital gain and loss calculations you need to be able to establish your basis as it relates to capital assets. This means all purchase information regarding your investments need to be retained for as long as you own the asset and for 7 years after disposition.
As always, if you have any questions about the length of time to maintain adequate records, consult your tax professional.
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