If you are audited, it is very likely that the auditor will ask to see the last few tax returns. It is recommended to keep these tax returns forever.
An added benefit of keeping your tax returns is that you can see what you claimed last year, allowing you to adjust for the current year.
If you purchased goods that you plan to sell later, you should keep the receipts to calculate your gain or loss on it correctly.
Anything regarding the property you own and any fixes and repairs that you perform.
Receipts for any jewelry or other valuable collector's items
Records for capital assets, stocks, bonds and such
What recordkeeping system should I have?
If you are an employee of a company, your system needn't be complex - you can keep your records separated in folders.
If you are a business owner, you may want to consider hiring a bookkeeper or accountant.
If you have any questions regarding accounting, domestic taxation, essential business accounting, international taxation, IRS representation, U.S. tax implications of Real Estate transactions or financial statements, please give us a call at 305-274-5811.