Advantages of Keeping Good Records by Individuals
You can avoid headaches at tax time by keeping track of your receipts and
other records throughout the year. Good record-keeping will help you remember
the various transactions you made during the year, which in turn may make
filing your return less, well, taxing.
Records help you document the deductions you've claimed on your return.
You'll need this documentation should the IRS select your return for
examination. Normally, tax records should be kept for three years, but some
documents - such as records relating to a home purchase or sale, stock
transactions, IRA, and business or rental property - should be kept longer.
In most cases, the IRS does not require you to keep records in any special
manner. Generally speaking, however, you should keep any and all documents that
may have an impact on your federal tax return:
- Bills
- Credit card and other
receipts
- Invoices
- Mileage logs
- Canceled, imaged, or
substitute checks or any other proof of payment
- Any other records to support
deductions or credits you claim on your return
Good record-keeping throughout the year saves you time and effort at tax
time when organizing and completing your return. For more information on what
kinds of records to keep, call our office at (305)846-6838 or (786)537-4380.
Client Portal
Market Watch